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:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Ord Minnett, its analysts have retained their buy rating but trimmed their price target on this iron ore producer’s shares to $28.00. This follows the release of its third quarter update this week. While Fortescue’s C1 costs were higher than it was expecting, the broker notes that this is consistent with what other miners are experiencing. In addition, Fortescue fell short of its shipment expectations for the quarter. Nevertheless, Ord Minnett remains positive on the miner and sees a lot of value in its shares. The Fortescue share price is trading at $22.67 today.
Nitro Software Ltd (ASX: NTO)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $3.70 price target on this global document productivity software company’s shares. This follows the release of its first quarter update this week. While it notes that no dollar figures were provided, Morgan Stanley believes the company is tracking ahead of its annual recurring revenue (ARR) guidance after delivering growth of 66% during the quarter. The Nitro share price is fetching $3.15 this afternoon.
Woolworths Group Ltd (ASX: WOW)
Analysts at Macquarie have retained their outperform rating and $44.50 price target on this retail conglomerate’ shares following its third quarter sales update. According to the note, the broker acknowledges that this quarterly result was hard to judge due to the prior period being impacted by COVID-19 panic buying. However, it believes Woolworths is performing better than Coles Group Ltd (ASX: COL) and has at least maintained its strong market share. It was also pleased to see that the Endeavour Drinks spin off is progressing well. The Woolworths share price is trading at $39.25 today.