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:
Afterpay Ltd (ASX: APT)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $149.00 price target on this payments company’s shares. Morgan Stanley was pleased with Afterpay’s third quarter update, which revealed sales ahead of its expectations. The broker also notes that the company’s platform is generating creating value for merchants through significant lead referrals via the Afterpay platform. The Afterpay share price is trading at $121.98 this afternoon.
Temple & Webster Group Ltd (ASX: TPW)
Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on this online furniture and homewares retailer’s shares to $15.00. This follows the release of Temple & Webster’s third quarter update this week. While the broker has lowered its earnings forecasts materially to account for management’s plan to invest heavily for growth, it appears to be a fan of the strategy and expects it to cement its leadership position. The Temple & Webster share price is fetching $9.99 today.
Westpac Banking Corp (ASX: WBC)
Analysts at Citi have retained their buy rating and lifted their price target on this banking giant’s shares to $28.50. According to the note, the broker believes that Westpac has the biggest cost reduction potential in the sector. This should be supportive of earnings and dividend growth in the coming years. As a result of this, Citi has named Westpac as its top pick among the big four banks. The Westpac share price is trading at $24.70 on Wednesday afternoon.