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:
GUD Holdings Limited (ASX: GUD)
According to a note out of Macquarie, its analysts retained their outperform rating but trimmed their price target on this diversified products company's shares to $13.60. Macquarie notes that GUD delivered a full year result largely in line with expectations. This was driven by an impressive performance by the company's Automotive business. And while lockdowns are impacting its performance, Macquarie expects GUD to rebound once trading conditions return to normal. The GUD share price is trading at $11.37 today.
Nick Scali Limited (ASX: NCK)
A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this furniture retailer's shares to $13.80. The broker was pleased with Nick Scali's FY 2021 results. It also wasn't surprised with its poor start to FY 2022 because of the impact of lockdowns and was already factoring this into its forecasts. As a result, it remains positive on Nick Scali's medium term outlook and expects its market position to strengthen once the pandemic passes. The Nick Scali share price is fetching $12.14 on Friday.
Reliance Worldwide Corporation Ltd (ASX: RWC)
Analysts at UBS have upgraded this plumbing parts company's shares to a buy rating with an improved price target of $6.16. According to the note, the broker expects the repairs and renovation markets to grow, supporting demand for Reliance Worldwide's products. And while it acknowledges that high copper prices could be a headwind, it expects this to be offset by price increases and cost outs. The Reliance share price is trading at $5.64 today.
