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:
Afterpay Ltd (ASX: APT)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $101.00 price target on this payments company’s shares. This follows Afterpay’s announcement of an agreement with Apple Pay and Google Pay for in-store payments in the United States. Morgan Stanley expects this to accelerate adoption and protect its first mover advantage in the rapidly growing buy now pay later market. I agree with Morgan Stanley and feel Afterpay would be a great buy and hold option.
BWX Ltd (ASX: BWX)
Analysts at Citi have retained their buy rating and $4.20 price target on this personal care products company’s shares following its equity raising and trading update. In respect to the latter, Citi notes that the company behind the Sukin brand delivered stronger than expected revenue and earnings growth in FY 2020. It also believes that management’s guidance for FY 2021 is conservative and suspects stronger growth could be achieved. I was impressed with BWX’s turnaround and feel it could be worth a closer look.
TPG Telecom Ltd (ASX: TPG)
A note out of Morgans reveals that its analysts have initiated coverage on the newly merged telco with an add rating and $9.12 price target. The broker notes that it has a strong position in the market with a number of popular brands. It appears to believe the combination of TPG Telecom and Vodafone Australia is a good one and is positive on its outlook. While not my top pick in the sector, I do think it could be worth considering.
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 Alumina, BWX, Life360, & Perpetual shares are charging higher
- Openpay share price on the move as key metrics boom
- BWX share price storms higher after $40 million placement and strong FY 2020 growth
- Market close: ASX 200 drops 0.7% today
- How to pick an ASX 200 share market bubble
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 shares to buy right now appeared first on Motley Fool Australia.
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