It has been another busy week for Australia's top brokers. This has led to the release of a large number of broker notes.
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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Galaxy Resources Limited (ASX: GXY)
According to a note out of Macquarie, its analysts have retained their outperform rating and lifted their price target on this lithium miner's shares to $4.90. The broker was very pleased with Galaxy's second quarter update. It notes that the company's production was higher than it expected. Whereas its costs were materially lower than what Macquarie was forecasting. Overall, the broker remains positive on the future and its proposed merger with Orocobre Limited (ASX: ORE). The Galaxy share price is trading at $4.36 today.
Kogan.com Ltd (ASX: KGN)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating but cut the price target on this ecommerce company's shares to $15.21. This follows the release of Kogan's business update earlier this week. While the broker notes that Kogan's sales growth is slowing and its inventory issues are impacting margins, it remains positive on the future due to the structural shift online. In addition to this, it feels that the company's valuation is attractive at the current level. The Kogan share price is fetching $10.99 this afternoon.
Zip Co Ltd (ASX: Z1P)
Analysts at Morgans have retained their add rating but trimmed their price target on this buy now pay later provider's shares to $8.57. This follows the release of Zip's fourth quarter update. According to the note, the broker was pleased with its overall performance during the quarter. And while it has trimmed its earnings forecasts, and thus its price target, to reflect higher costs, it remains positive on the long term. The broker believes management has executed well and it sees longer term upside if Zip can execute on its ambitions of becoming a global payments player. The Zip share price is trading at $7.05 today.
