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 buy ratings that have caught my eye are summarised below. Here's why brokers think these ASX shares are in the buy zone:
Cochlear Limited (ASX: COH)
According to a note out of Citi, its analysts have retained their buy rating and $198.00 price target on this hearing solutions company's shares after it announced the launch of the Nucleus Profile Plus Series cochlear implant. Citi's analysts appear pleased with the news and feel more confident with their growth forecasts now. The broker expects the product to be on sale in all of its key markets by FY 2020. I'm a big fan of Cochlear and would have to agree with Citi on this recommendation.
Premier Investments Limited (ASX: PMV)
Analysts at UBS have retained their buy rating and $19.80 price target on this retail conglomerate's shares. According to the note, the broker believes the market is undervaluing its key Smiggle business. Its analysts feel this is unjustified and has created a buying opportunity for investors. Whilst I do agree with UBS on Premier Investments, I do have a few concerns over the company's recent decision to change its Smiggle growth strategy once again.
NEXTDC Ltd (ASX: NXT)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $7.75 price target on the shares of this data centre operator following its appearance at the investment bank's Tenth Annual Small and Mid-Cap Conference. According to the note, the broker is confident that the company's next round of facilities will generate healthy returns, even after factoring in a conservative pricing outlook. In addition to this, it expects NEXTDC to take advantage of the industry-wide tailwinds of cloud migration (both public and private) and growth in big data. I agree with NEXTDC that its shares could be a great buy and hold option.
