Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again this week. 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:
Coles Group Ltd (ASX: COL)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $20.25 price target on this supermarket giant’s shares following its third quarter update. Although the broker acknowledges that Coles fell a touch short of the market’s expectations, it believes this was already priced into its share price. In addition, the broker isn’t convinced that a price war in the industry is coming. As a result, it sees a lot of value in the company’s shares at the current level. The Coles share price is fetching $16.36 this afternoon.
IDP Education Ltd (ASX: IEL)
Analysts at UBS have retained their buy rating but trimmed the price target on this language testing and student placement company’s shares to $29.05. According to the note, the broker points out that the Indian market is IDP Education’s most important market, contributing over a third of its expected revenue in FY 2021. In light of this, it does see the COVID-19 crisis in the country as a risk to earnings. Nevertheless, long term it believes the company is well-placed and expects it to come out of the pandemic in a stronger market position. Particularly given its software business. The IDP Education share price is trading at $22.67 on Thursday.
Life360 Inc (ASX: 360)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this technology company’s shares to $8.30. According to the note, the broker was pleased with Life360’s first quarter update. It also notes that the company has just announced the acquisition of Jiobut, which opens up cross-selling opportunities. Overall, the broker is very positive on its outlook and sees strong growth ahead. The Life360 share price is trading at $5.92 this afternoon.