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:
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Bank of Queensland Limited (ASX: BOQ)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $10.00 price target on this regional bank's shares. The broker notes that Bank of Queensland plans to make a collective provision release of $75 million thanks to Australia's improving economy. This was more than the broker was expecting, which it notes means there is upside risk to its earnings estimates this year. Outside this, it likes the bank due to the solid operating environment and its strong franchise performance. The Bank of Queensland share price is trading at $8.90 today.
Coles Group Ltd (ASX: COL)
A note out of Macquarie reveals that its analysts have upgraded this supermarket operator's shares to an outperform rating with an improved price target of $18.20. Macquarie made the move on valuation grounds and its preference for exposure to consumer staples. It also believes Coles will benefit from the normalisation of shopping trends post-pandemic. The Coles share price is currently fetching $17.01.
SEEK Limited (ASX: SEK)
Another note out of Macquarie reveals that its analysts have upgraded this job listings company's shares to an outperform rating with an improved price target of $40.00. The broker made the move on the belief that SEEK is going to benefit from a significant increase in yields. It believes the removal of discounts will lead to a 9% yield tailwind. Macquarie is also expecting the Australian unemployment rate falling from 5.5% to closer to 4% during 2023, underpinning a 25% increase in ad volumes in FY 2022. The SEEK share price is trading at $32.78 this morning.
