With most brokers taking a break over the Christmas and New Year holiday period, research notes are few and far between right now.
But don't worry! Listed below are three recent broker buy recommendations that still have plenty of upside potential.
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 Morgan Stanley, its analysts retained their overweight rating and $256.00 price target on this biotechnology company's shares. Despite all the doom and gloom around CSL at present, Morgan Stanley remains very positive on its outlook. This is due to the long term demand for immunoglobulins and plasma yield improvements from the Horizon program. The broker expects the latter to be supportive of a margin recovery in the key CSL Behring business. In light of this and recent share price weakness, Morgan Stanley sees a very favourable risk/reward profile here for Aussie investors. The CSL share price is trading at $173.20 on Friday afternoon.
Flight Centre Travel Group Ltd (ASX: FLT)
A note out of Citi revealed that its analysts have retained their buy rating on this travel agent giant's shares with an improved price target of $16.75. This followed news that the company agreed to acquire online cruise platform Iglu for 122 million British pounds. Citi notes that this is the second cruise related acquisition the company has made in two years. It feels that it is an indication that management is making a strategic push into higher-value and less volatile leisure segments. In response to the acquisition, Citi lifted its earnings estimates and its valuation accordingly. The Flight Centre share price is fetching $15.02 on Friday afternoon.
Lovisa Holdings Ltd (ASX: LOV)
Analysts at Morgan Stanley upgraded this fashion jewellery retailer's shares to an overweight rating with a $38.00 price target. According to the note, Morgan Stanley believes that recent volatility in Lovisa's growth is transitory rather than structural. In fact, the broker believes that the company can grow its earnings per share by 83% through to FY 2028. This is expected to be supported by the company's agility on product range and its best-in-class supply chain execution. As a result, Morgan Stanley thinks that the recent de-rating of its shares is an opportunity for investors to build a position in a competitively advantaged Australian retailer. The Lovisa share price is trading at $29.32 this afternoon.
