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:
Galaxy Resources Limited (ASX: GXY)
According to a note out of Ord Minnett, its analysts have upgraded this lithium miner’s shares to a buy rating with an improved price target of $4.80. The broker made the move on the belief that lithium prices will be strong in the near term thanks to growing demand and a potential market deficit. In addition to this, the broker sees Galaxy as particularly well-positioned to benefit thanks to its upcoming merger with Orocobre Limited (ASX: ORE). The Galaxy share price is $4.12 this afternoon.
Nearmap Ltd (ASX: NEA)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $3.20 price target on this aerial imagery technology and location data company’s shares. This follows an update this week from Nearmap which revealed that it expects to outperform its guidance in FY 2021 thanks to a better than expected performance by its North American business. The Nearmap share price is fetching $2.24 on Wednesday.
ResMed Inc. (ASX: RMD)
Analysts at Credit Suisse have retained their outperform rating and lifted their price target on this medical device company’s shares to $37.00. According to the note, the broker believes ResMed has a significant opportunity to increase its market share following Philips’ DreamStation recall. Especially given that Philips will be unable to service new patients while it replaces its current installed base. Credit Suisse estimates that this could boost ResMed’s share of the global CPAP market to 65%. The ResMed share price is trading at $33.50 this afternoon.