Many of Australia's top brokers have been busy adjusting their financial models again. This has led 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:
BINGO Industries Ltd (ASX: BIN)
According to a note out of Goldman Sachs, it has reinstated coverage on this waste management company's shares with a conviction buy rating and $2.40 price target. The broker made the move after BINGO announced the completion of the acquisition of Dial a Dump Industries. Goldman believes this acquisition could be a game changer for the company as it will allow it to be fully vertically integrated from collections to landfill and become the largest player in B&D waste in Sydney. It also diversifies its operations and means it is less exposed to residential construction and collections. I agree with Goldman Sachs on BINGO and think it would be a great investment option at the current price.
Coles Group Ltd (ASX: COL)
A note out of Citi reveals that its analysts have retained their buy rating and $13.40 price target on this supermarket giant's shares after it announced an exclusive partnership with Ocado. According to the note, whilst the broker sees considerable benefits from the agreement, it notes that it will be some time before these benefits are realised. Citi believes the deal with Ocado could lift food margins by up to 20 basis points and group earnings by up to 5% from FY 2024. I think Citi is spot on with Coles and feel it would be a good long term investment.
Harvey Norman Holdings Limited (ASX: HVN)
Analysts at Deutsche Bank have retained their buy rating and $4.70 price target on this retailer's shares. According to the note, the broker believes that Harvey Norman's shares are changing hands at a very attractive level. Especially given the positive performance of its international operations and their solid growth potential. Deutsche expects these operations to account for over 40% of earnings (excluding property) with five years. Whilst I'm not a big fan of Harvey Norman, I think that Deutsche Bank makes some fair points.
