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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CSL Ltd (ASX: CSL)
According to a note out of Morgans, its analysts have retained their buy rating and on this biotechnology giant's shares with a trimmed price target of $303.70. Morgans thinks that CSL's shares are materially undervalued at current levels, highlighting that they trade on an EV/EBIT multiple of 18.2x. This is more than 25% below its 10-year average of 24.7x. In addition, based on a conservative sum of the parts valuation, Morgans estimates that fair value for CSL is $196 billion. This implies around 35% upside from current trading levels. In light of this, it thinks the market is valuing CSL on less than a single division. Its calculations imply a ~10% discount to the core Behring business alone, while effectively attributing zero or negative value to the CSL Seqirus and CSL Vifor businesses. The CSL share price ended the week at $240.92.
Goodman Group (ASX: GMG)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $40.47 price target on this industrial property company's shares. Morgan Stanley notes that Goodman has announced a US$2.7 billion data centre partnership in Hong Kong. This private institutional investment vehicle will be focused exclusively on the Hong Kong data centre market and will hold four fully stabilised centres and two centres under active development. The broker believes this is a key milestone for Goodman and its data centre ambitions. The Goodman share price was fetching $33.74 at Friday's close.
Life360 Inc. (ASX: 360)
Analysts at Bell Potter have retained their buy rating on this location technology company's shares with an improved price target of $37.50. According to the note, Bell Potter is expecting another strong quarterly result from Life360 next month. It is forecasting a 29% increase in revenue to US$109.1 million and a 37% jump in annualised monthly revenue to US$418.1 million. This is expected to be driven partly by a 26% lift in global monthly active users to 88.6 million. And while Bell Potter expects Life360's underlying EBITDA to soften quarter on quarter due to a higher sales and marketing investment, it believes management will still reaffirm its earnings guidance for the full year. The Life360 share price ended the week at $32.30.
