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 ASX shares brokers have named as buys this week are listed below. Here's why they are bullish on them:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts have retained their buy rating and $7.30 price target on this infant formula company's shares. The broker remains positive on A2 Milk due to its strong brand health in China and improved inventory position. Citi is also optimistic that management's new strategy will support its performance in the coming years. Particularly if other struggling foreign brands decide to exit China. The A2 Milk share price is trading at $5.51 on Tuesday.
Costa Group Holdings Ltd (ASX: CGC)
A note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed their price target on this horticulture company's shares to $3.41. While the broker has reduced its earnings estimates to reflect new leases, it isn't enough to change its positive view. Macquarie continues to believe that weakness in the Costa share price in 2021 is a buying opportunity this year. The Costa share price is fetching $2.97.
Incitec Pivot Ltd (ASX: IPL)
Analysts at Morgan Stanley have retained their overweight rating and $4.30 price target on this agricultural chemicals company's shares. This follows news that the company is acquiring European rival Titanobel. Morgan Stanley believes this is a good move by management. And while the European market is not a quick-growing one, the broker expects the synergies to boost its earnings. The Incitec Pivot share price is trading at $3.43 this afternoon.
