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 buy ratings that have caught my eye are summarised below. Here's why brokers think these ASX shares are in the buy zone:
Clover Corporation Limited (ASX: CLV)
According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted the price target on this infant formula ingredients supplier's shares to $3.31 following the release of its full year results. The broker was impressed with its results and appears confident that there will be more of the same in the near term. Especially given a number of positive tailwinds which are likely to lead to increasing demand. I agree with Ord Minnett on Clover and feel it is a good way to gain exposure to the infant formula boom.
CSL Limited (ASX: CSL)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $250.00 price target on this biotherapeutics giant's shares. According to the note, the broker is confident that CSL will deliver further solid growth thanks to a rise in healthcare spending and increased chronic disease. In addition to this, the broker believes that the company's growing plasma collection network is a competitive advantage and leaves it well-positioned for growth. I agree with Macquarie and would also class CSL's shares as a buy.
Webjet Limited (ASX: WEB)
Analysts at UBS have retained their buy rating but trimmed the price target on this online travel agent's shares slightly to $18.65. According to the note, although the broker acknowledges that the Thomas Cook collapse is disappointing, Webjet still has a favourable long term outlook thanks to structural and market share benefits. The broker was also pleased to see the company confirm that, other than the Thomas Cook impact, there are no changes to the rest of its earnings drivers for FY 2020. I think UBS is on the money with this one and would be a buyer of its shares.
