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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Coles Group Ltd (ASX: COL)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating on this supermarket giant's shares with an improved price target of $26.10. The broker was pleased with Coles' first quarter update and notes that its sales growth outperformed its main rival. This suggests that its market share gains have continued. And with Coles appearing to be retaining its new shoppers, Macquarie believe it is well-placed to deliver strong earnings growth in the next three years. As a result, it thinks its shares are good value at current levels. The Coles share price ended the week at $22.05.
CSL Ltd (ASX: CSL)
A note out of Morgans reveals that its analysts have retained their buy rating on this biotech giant's shares with a reduced price target of $249.51. Although the broker concedes that CSL's guidance downgrade was disappointing and it remains unclear when US influenza vaccination rates will stabilise, it thinks the share price selldown has been severely overdone. As a result, Morgans believes that its shares are trading on unjustifiably low earnings multiples at present and is recommending investors buy the dip. The CSL share price was fetching $178.50 at Friday's close.
Zip Co Ltd (ASX: ZIP)
Another note out of Macquarie reveals that its analysts have initiated coverage on this buy now pay later provider's shares with a $4.85 price target. According to the note, the broker believes that Zip is an attractive investment option for Aussie investors thanks partly to its US segment. It highlights that this side of the business is currently outpacing peers. And despite US total transaction value (TTV) growing >40% annually, it still has a significant opportunity to acquire new customers in an underserved market. In light of this, it is forecasting Zip to continue to deliver rapid growth in the coming years. This will be supported by increased product adoption, expansion of merchant network, increased customer engagement, and digital product innovation. The Zip share price ended the week at $3.87.
