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:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and $50.30 price target on this gaming technology company's shares. The broker has been looking at Aristocrat's digital business and believes that recent regulatory pressure will lead to a reduction in the company's platform fees in the future. Credit Suisse has previously estimated that Aristocrat will pay upwards of $700 million in royalties to mobile platforms like Apple and Google in 2021. The Aristocrat Leisure share price is fetching $45.31 today.
JB Hi-Fi Limited (ASX: JBH)
A note out of Citi reveals that its analysts have upgraded this retail giant's shares to a buy rating with a slightly trimmed price target of $53.00. The broker made the move on valuation grounds after a sizeable pullback. Citi highlights that JB Hi-Fi's shares are trading at a significantly greater than normal discount to the average multiple of the ASX 200 excluding resources. The JB Hi-Fi share price is trading at $44.94 today.
South32 Ltd (ASX: S32)
Another note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this mining giant's shares to $4.40. This follows news that South32 has signed an agreement to acquire a further 25% stake in the Mozal aluminium smelter in Mozambique for $250 million. The broker expects this to lead to a notable increase in its aluminium production output. Which is very good news given Credit Suisse's positive outlook for the metal. The South32 share price is fetching $3.52 on Friday.
