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:
Afterpay Ltd (ASX: APT)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $145.00 price target on this payments company’s shares. The broker notes that rival PayPal has decided to increase its buy now pay later pricing. The payments giant is increasing its rates to 4% from 3.2% for a typical US$100 transaction. This compares to the 3.8% that Afterpay typically charges in the market. It feels this signals that PayPal isn’t competing with Afterpay on pricing, which is a big positive for the company. The Afterpay share price is fetching $122.25 today.
Qantas Airways Limited (ASX: QAN)
Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted their price target on this airline operator’s shares to $7.00. According to the note, the broker believes that Qantas’ shares are undervalued at the current level. Particularly given the ongoing improvement in domestic travel throughout 2021. And while it doesn’t expect its overall capacity to normalise for a little while to come, it is confident the company will be cash flow positive. The Qantas share price is trading at $4.74 today.
ResMed Inc. (ASX: RMD)
Analysts at Macquarie have upgraded this sleep treatment focused medical device company’s shares to an outperform rating with a $34.85 price target. According to the note, the broker believes ResMed has a real opportunity to win market share following the recent recall of the Philips DreamStation CPAP devices. In addition to this, it is a fan of ResMed due to the strength of its balance sheet. It feels this gives it the flexibility to fund its growth or even return funds to shareholders. The ResMed share price is currently fetching $32.45.
The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.
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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. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended ResMed Inc. 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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