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:
ARB Corporation Limited (ASX: ARB)
According to a note out of Morgan Stanley, its analysts have commenced coverage on this 4×4 accessories company's shares with an overweight rating and $56.00 price target. Morgan Stanley likes the company due to its strong market position globally. It believes this leaves ARB well-positioned for growth in the coming years. Particularly given its store rollout plans in the United States. The ARB share price is trading at $47.46 this afternoon.
Baby Bunting Group Ltd (ASX: BBN)
A note out of Citi reveals that its analysts have upgraded this baby products retailer's shares to a buy rating with an improved price target of $5.98. The broker made the move partly on valuation grounds following a pullback in the Baby Bunting share price since its results. The broker feels Baby Bunting is well-placed to deliver a solid update at its annual general meeting next month. This is due to the non-discretionary nature of its products and its strong offering. The Baby Bunting share price is fetching $5.39 today.
South32 Ltd (ASX: S32)
Analysts at Macquarie have retained their outperform rating and lifted their price target on this mining giant's shares to $4.30. This follows news that its Alumar aluminium smelter in Brazil will be restarted next year. In response to the news, the broker has lifted its aluminium production forecasts and earnings estimates accordingly. The South32 share price is trading at $3.36 on Wednesday.
