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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Carsales.Com Ltd (ASX: CAR)
According to a note out of UBS, its analysts have retained their buy rating and $24.50 price target on this auto listings company's shares. This follows news that the company is acquiring a 49% stake in US online marketplace Trader Interactive. The broker appears supportive of the acquisition. However, it intends to do more analysis before updating its financials and recommendation further. The Carsales share price was fetching $19.51 prior to its trading halt.
Estia Health Ltd (ASX: EHE)
A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this aged care operator's shares to $3.15. The broker notes that the aged care sector is set to benefit from additional funding following the Federal Budget. In addition to this, it likes Estia Health ahead of its rivals due to its strong balance sheet and attractive valuation. Macquarie estimates that Estia Health's shares are trading at ~17x FY 2022 earnings. The Estia Health share price is trading at $2.56 today.
REA Group Limited (ASX: REA)
Analysts at Morgan Stanley have retained their overweight rating and $175.00 price target on this property listings company's shares. The broker has been looking at the Federal Budget and sees a few positives for REA Group. Outside this, the broker continues to believe REA Group is well-placed for earnings growth thanks to a rebound in Melbourne and Sydney listings and higher property churn. The latter is being driven by people rethinking where they want to live following the pandemic. The REA Group share price is fetching $149.82 this morning.
