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:
James Hardie Industries plc (ASX: JHX)
According to a note out of Macquarie, its analysts have retained their outperform rating and lifted their price target on this building materials company's shares to $50.00. This follows the release of its fourth quarter and full year results earlier this week. James Hardie's profits came in ahead of Macquarie's expectations, thanks largely to its performance in Europe and the Asia-Pacific markets. The broker was also pleased with the company's margin targets. It believes this is a strong sign that management is confident in its ability to manage cyclical variability. The James Hardie share price is currently fetching $40.91.
Nuix Ltd (ASX: NXL)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $7.50 price target on this analytics company's shares. This follows Nuix's investor briefing on Tuesday. Overall, the broker came away from the event feeling positive about the industry and its future. Though, it acknowledges that the market may take time to become as confident due to its guidance downgrades and uncertainty over future growth rates. The Nuix share price is trading at $3.69 on Wednesday.
St Barbara Ltd (ASX: SBM)
Analysts at Goldman Sachs have retained their buy rating but trimmed their price target on this gold miner's shares to $3.00. According to the note, the broker remains positive on St Barbara despite its "unsurprising" guidance downgrade this week. Goldman likes St Barbara due to the significant discount that its shares trade at compared to its peers and its positive growth outlook. In respect to the former, it notes that it trades at 0.5x net asset value (NAV) compared to the sector average of 0.75x NAV. The St Barbara share price is fetching $1.77 this morning.
