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:
Corporate Travel Management Ltd (ASX: CTD)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $31.00 price target on this corporate travel specialist's shares ahead of its full year results release next month. Morgan Stanley expects Corporate Travel Management's cash flow conversion to be better in the second half. Whilst I agree with Morgan Stanley that the company is attractively priced, I intend to wait for the results release before investing.
ResMed Inc. (ASX: RMD)
A note out of Morgans reveals that its analysts have retained their add rating and lifted the price target on this sleep treatment-focused medical device company's shares to $21.27. According to the note, the broker made the move after ResMed delivered an FY 2019 result that beat its expectations. Looking ahead, its analysts believe the company is well-placed for further growth over the medium term. I agree with Morgans and continue to class ResMed as a strong buy.
Rio Tinto Limited (ASX: RIO)
Equity analysts at Macquarie have retained their outperform rating and $117.00 price target on this mining giant's shares. According to the note, the broker expects Rio Tinto to deliver a strong half year result on Thursday. And with iron ore prices at high levels, the broker believes there is scope for Rio Tinto to return additional funds to shareholders. I think Macquarie is spot on and feel Rio Tinto is a great option for investors looking for exposure to the resources sector.
