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:
Altium Limited (ASX: ALU)
According to a note out of Citi, its analysts have retained their buy rating and $33.50 price target on this electronic design software provider’s shares. The broker notes that Altium has been lifting its prices on perpetual licences but not on its subscriptions. It believes this is a sign that the company is aiming to shift customers to subscriptions, which it feels is a positive move. In the meantime, it also expects the company to benefit from the customers paying more to stick with perpetual licences. The Altium share price is fetching $27.91 today.
Healius Ltd (ASX: HLS)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this healthcare company’s shares to $4.45. According to the note, the broker believes Healius is benefiting greatly from strong COVID-19 testing volumes. Particularly given the recent lockdown in Victoria. This has led to the broker upgrading its earnings estimates for FY 2021 and FY 2022. The Healius share price is trading at $4.34 today.
Sonic Healthcare Limited (ASX: SHL)
Analysts at Morgan Stanley have retained their overweight rating and $38.60 price target on this healthcare company’s shares. According to the note, industry data is pointing to robust demand for its services in the second half. This is positioning it to deliver a strong full year result in FY 2021. And looking ahead, the broker is expecting the company to grow its earnings by a CAGR of 11% through to FY 2023. In light of this, it feels its valuation is attractive in comparison to other healthcare shares. Especially given its dividend yield and strong balance sheet. The Sonic share price is trading at $34.76 today.