Australia's top brokers have been busy adjusting their estimates and recommendations once again. This has led 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:
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A2 Milk Company Ltd (ASX: A2M)
According to a note out of UBS, its analysts have retained their buy rating and NZ$16.00 (A$14.86) on this fresh milk and infant formula company's shares. The broker acknowledges that the short term could be difficult and its earnings are at risk from weakness in the daigou channel. However, it believes longer term things are more positive thanks to a recovery in indirect infant formula sales and market share gains in the Chinese offline retail channel. The a2 Milk share price is fetching $7.39 on Friday.
Audinate Group Ltd (ASX: AD8)
Analysts at Morgan Stanley have retained their overweight rating and $10.00 price target on this audio networking solutions provider's shares. This follows the release of Audinate's solid third quarter update this week. According to the note, the broker was pleased with the company's performance during the quarter. It notes that Audinate's revenue of US$7 million was another quarterly record. Looking ahead, the broker believes the company is well-placed to benefit from a rebound in demand from the higher education and corporate markets. The Audinate share price is trading at $8.15 today.
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this banking giant's shares to $33.50. According to the note, the broker believes that the upcoming updates out of the banks have the potential to surprise to the upside. It feels this could lead to increasing confidence in the sector, potentially driving the shares of the big four higher. Furthermore, ANZ is now the broker's top pick in the sector. This follows upgrades to its earnings estimates to account for lower credit impairment charges. The ANZ share price is trading at $28.61 this morning.
