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:
Afterpay Touch Group Ltd (ASX: APT)
According to a note out of Morgans, its analysts have retained their add rating but trimmed the price target on this payments company's shares to $23.43. The broker made the move after AUSTRAC ordered an audit of its anti-money laundering and counter-terrorism financing compliance. At this stage the broker believes it is hard to gauge what impact this could have on its business, but views AUSTRAC's demands as an escalation of the issue. Nevertheless, the broker still sees value in its shares at the current level after the recent pullback. I agree with Morgans that Afterpay Touch's shares are in the buy zone.
Appen Ltd (ASX: APX)
A note out of Citi reveals that its analysts have retained their buy rating and lifted the price target on this fast-growing tech star's shares to $29.79 following its recent update. According to the note, the broker is a lot more confident on the acquisition of the Figure Eight business following the update and has increased its estimates accordingly. I think Citi is spot on with Appen and believe it would be a great long-term investment.
Asaleo Care Ltd (ASX: AHY)
Analysts at Credit Suisse have retained their outperform rating but reduced the price target on this personal care products company's shares to $1.10. According to the note, although pulp prices have fallen materially in recent months and tissues sales data appears solid, the weaker Australian dollar means that Asaleo Care isn't likely to have benefited as greatly as hoped. However, with its shares trading notably lower than its revised price target, Credit Suisse continues to see its shares as a buy. Whilst I think Credit Suisse makes some great points, I intend to wait for its half year results before considering an investment.
