It was another busy week for Australia's top brokers. This has led to the release of a number of broker notes.
Three broker buy ratings that you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone:
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ResMed Inc. (ASX: RMD)
According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating and $49.30 price target on this sleep disorder treatment company's shares. Goldman notes that Apnimed has had success with its phase 3 trial of an obstructive sleep apnoea (OSA) pill. However, the broker isn't concerned and feels that the share price weakness caused by the news was an overreaction. This is because it thinks that Apnimed's AD109's pill is unlikely to displace CPAP as first line therapy in treating OSA. Particularly given that its initial target opportunity are patients who have refused or have failed CPAP. As a result, Goldman Sachs remains very bullish on ResMed's long term growth outlook. The ResMed share price ended the week at $38.30.
Web Travel Group Ltd (ASX: WEB)
A note out of Ord Minnett reveals that its analysts have retained their buy rating on this business to business (B2B) travel company's shares with an increased price target of $8.30. The broker points out that Web Travel's shares have fallen heavily over the past 12 months due to revenue margin pressures and delays with its results release. However, it feels investors should focus more on its positive long term outlook. In addition, it isn't concerned about softening leisure travel trends. That's because Web Travel's WebBeds business is less exposed to leisure travel and therefore won't be impacted like traditional travel bookers. And with the company's results release just around the corner, it suspects that a re-rating could be on the way. The Web Travel share price was fetching $4.77 at Friday's close.
Wesfarmers Ltd (ASX: WES)
Another note out of Goldman Sachs reveals that its analysts have retained their buy rating on this conglomerate's shares with an improved price target of $87.30. Goldman was pleased with Wesfarmers' strategy day event last week. It notes that management has laid out an organic-growth oriented plan with balanced portfolio priorities. Goldman highlights that for Bunnings, in addition to space productivity, the company will further scale marketplace and retail media, which it believes should be margin accretive. Whereas for Kmart, it notes that management has outlined its revised long-term aspiration to double sales to ~$20 billion. Overall, its analysts view the strategic plan positively and believe it supports a high quality growth path for Wesfarmers. The Wesfarmers share price ended last week at $82.31.
