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 are summarised below. Here’s why they think these ASX shares are in the buy zone.
Bank of Queensland Limited (ASX: BOQ)
According to a note out of Citi, its analysts have upgraded this regional bank’s shares to a buy rating with an improved price target of $10.50. Citi notes that the bank delivered an FY 2021 result in line with its expectations and was pleased with its outlook. The broker expects further strong volume growth and discipline on costs to deliver positive jaws (when growth in gross income exceeds growth in expenses). Citi feels this should leave it well-positioned versus its peers in a slowing revenue environment. The Bank of Queensland share price is trading at $9.39 on Thursday.
Nitro Software Ltd (ASX: NTO)
A note out of UBS reveals that its analysts have initiated coverage on this document productivity software company. They have a buy rating on Nitro and a $4.70 price target. UBS believes Nitro is well-placed for growth in the coming years and is forecasting strong recurring revenue growth. It also sees significant potential in the company’s NitroSign offering in the US$17 billion e-signing market. The Nitro share price is fetching $3.51 this afternoon.
Westpac Banking Corp (ASX: WBC)
Another note out of Citi reveals that its analysts have retained their buy rating and $30 price target on this banking giant’s shares. This follows the release of an update which reveals that the bank expects $1.3 billion in notable items for FY 2021. While Citi was disappointed with this and feels it is a hit to management’s credibility at a time when it is working on bold cost reductions, it remains positive on the bank. This is due largely to the aforementioned cost base reduction plans. The Westpac share price is trading at $25.52 today.