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:
Afterpay Ltd (ASX: APT)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $145.00 price target on this payments company’s shares. This follows the announcement of the rollout of its Money by Afterpay app. The broker believes the app has the potential to almost double its revenue in the Australian market. It also expects it to boost engagement and reduce payment processing costs. The Afterpay share price is trading at $107.32 today.
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
A note out of Morgans reveals that its analysts have retained their add rating and $34.50 price target on this banking giant’s shares. This follows the announcement of a $1.5 billion on-market share buy-back. Morgans believes this demonstrates the strength of the bank’s balance sheet and expects it to boost investor confidence. Morgans also suspects that further capital management could be coming in the near future. The broker estimates that ANZ will have surplus CET1 capital of $6.6 billion at the end of FY 2022. The ANZ share price is fetching $27.81 this afternoon.
Sonic Healthcare Limited (ASX: SHL)
Analysts at Credit Suisse have retained their outperform rating and lifted their price target on this healthcare company’s shares to $43.50. According to the note, the broker believes the spread of the Delta variant of COVID-19 globally will support strong testing volumes. Credit Suisse expects this to underpin strong earnings, allowing Sonic to pay down debt and consider acquisitions. The Sonic share price is trading at $39.88.