Many of Australia's top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
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:
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Jumbo Interactive Ltd (ASX: JIN)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $15.20 price target on this lottery ticket seller's shares. The broker notes that lottery jackpots have been strong during the second half, which bodes well for ticket sales on Jumbo's platform. Outside this, the broker believes there is a big opportunity for its SaaS business from the migration to online lotteries over the long term. The Jumbo share price is trading at $13.75 on Wednesday.
REA Group Limited (ASX: REA)
Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $175.00 price target on this property listings company's shares. According to the note, the broker believes REA Group is well-placed to benefit from the booming housing market. So much so, it sees potential for an earnings super cycle next year. It notes that this is being driven by listings growth and additional inventory. The latter is being underpinned by people re-evaluating where they want to live following the pandemic. The REA Group share price is fetching $155.00 today.
Zip Co Ltd (ASX: Z1P)
Analysts at Citi have upgraded this buy now pay later provider's shares to a buy rating with an $11.30 price target. According to the note, the broker was very pleased with Zip's third quarter update. The highlight for Citi was its volume growth, which was underpinned by a better than expected performance by its US-based Quadpay business. The Zip share price is trading at $9.85 on Wednesday afternoon.
