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 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 $7.20 price target on this infant formula company’s shares. While the broker suspects that there could be more bad news looming, it also believes that any further share price weakness could potentially result in a takeover approach. Citi has also spoken positively recently about a2 Milk’s inventory repositioning and the strength of the brand in China. The A2 Milk share price is fetching $5.97 this afternoon.
Baby Bunting Group Ltd (ASX: BBN)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $6.90 price target on this baby products retailer’s shares. The broker believes that the recent weakness in the Baby Bunting share price is a buying opportunity. This is due to its leadership position in the category and strong demand from consumers for its offering despite the pandemic. It expects a solid update at next week’s annual general meeting. The Baby Bunting share price is trading at $5.49 today.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Another note out of Citi reveals that its analysts have retained their buy rating and $159.05 price target on this pizza chain operator’s shares. According to the note, the broker has been speaking to industry participants in France and was pleased with what it heard. Overall, the broker believes the French market is a key one for the company and feels positive on its growth plans there. The Domino’s share price is fetching $153.23 this afternoon.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk, Baby Bunting, and Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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