Australia's top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a number of broker notes.
Three broker buy ratings that have caught my eye are summarised below. Here's why brokers think these ASX shares are in the buy zone:
Afterpay Ltd (ASX: APT)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating but trimmed their price target on this payments company's shares to $149.00. The broker has been looking into the entry of Commonwealth Bank of Australia (ASX: CBA) into the buy now pay later market. It expects this to put pressure on Afterpay's merchant fees in the local market. However, this isn't enough to dim its positive view of the company. Particularly given the strong performance of its US business and its expansion across mainland Europe. It believes Afterpay could be on the cusp of building a global buy now pay later platform. The Afterpay share price is trading at $119.77 this morning.
EML Payments Ltd (ASX: EML)
A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this payments company's shares to $6.20. This follows the announcement of its acquisition of Sentenial Limited for up to 110 million euros on Wednesday. Macquarie appears positive on the acquisition, noting that it gives EML exposure to open banking's strong structural growth story. The EML share price is fetching $5.67 on Thursday.
Qantas Airways Limited (ASX: QAN)
Analysts at Ord Minnett have retained their buy rating and $6.00 price target on this airline operator's shares. This follows the announcement of a travel bubble between Australia and New Zealand that will launch later this month. Ord Minnett was pleased with the news. Combined with the ongoing domestic recovery, it expects the bubble to support its balance sheet recovery. In addition, it believes Qantas can come out of the crisis in a stronger position that when it entered it. The Qantas share price is trading at $5.39 today.
