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:
Temple & Webster Group Ltd (ASX: TPW)
According to a note out of Credit Suisse, its analysts have initiated coverage on this online furniture and homewares retailer's shares with an outperform rating and $12.54 price target. The broker believes the company is well-positioned in a large and growing furniture and homewares market which is shifting online. Credit Suisse sees scope for 13% of industry sales to be made online by FY 2025. This puts Temple & Webster in a position to grow its sales at a rapid rate over the coming years. The Temple & Webster share price is fetching $10.71 this morning.
Universal Store Holdings Ltd (ASX: UNI)
A note out of Morgans reveals that its analysts have retained their add rating and $8.37 price target on this fashion retailer's shares. This follows the release of its third quarter update. Morgans was happy with Universal Store's sales growth, which came in almost 40% higher than the prior corresponding period. As a result of this update, the broker continues to believe the company is well-placed to grow at a strong rate over the coming years. The Universal Store share price is trading at $7.80 on Wednesday.
Westpac Banking Corp (ASX: WBC)
Another note out of Morgans reveals that its analysts have retained their add rating and $28.50 price target on this banking giant's shares. This follows Westpac's announcement of notable items that will be included in its first half results next month. While Morgans has downgraded its earnings forecasts for FY 2021 slightly to reflect this, it remains positive on the bank due to improving trading conditions in the sector. It also notes the positive outlook for asset quality, dividends and capital management. The Westpac share price is fetching $25.18 on Wednesday morning.
