Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.
Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts have retained their buy rating and $21.50 price target on this fresh milk and infant formula company’s shares. The broker believes that a2 Milk performed strongly during the 18 June Mid-Year Shopping Festival in China. It expects this to have helped shift any excess inventory. I agree with Citi on a2 Milk and would be a buyer of its shares. Especially now it appears to be planning to put its sizeable cash balance to work with new product launches or acquisitions.
CSL Limited (ASX: CSL)
Analyst at UBS have retained their buy rating and $335 price target on this biotherapeutics company’s shares following its acquisition of uniQure’s AMT-061 gene therapy. UBS appears supportive of the acquisition. And while it notes that it is likely to cannibalise the sales of its current haemophilia B therapy (Idelvion) in the future, it doesn’t expect it to be used in children. This could mean both therapies have a place in the market. I agree with UBS and feel CSL would be a great long term investment option.
Qantas Airways Limited (ASX: QAN)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on the airline’s shares to $5.30. The broker appears pleased with its decision to raise capital to create an extra financial buffer over the medium term and support its cost cutting plans. And although it doesn’t expect the airline to be profitable again until FY 2022, it still believes it is a buy today. I think Qantas could prove to be a good investment option if domestic tourism markets recovery in 2021.
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
- Why Kogan, Myer, Orocobre, & Qantas shares are dropping lower
- ASX 200 rebounds 1.1%: Big four banks charge higher, Qantas sinks after raising $1.4bn
- REA Group share price has charged 60% since the market bottomed
- Here’s everything you need to know about CSL’s latest acquisition
- Share price winners and losers of the pandemic
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Brokers name 3 ASX 200 shares to buy today appeared first on Motley Fool Australia.
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