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 shares are in the buy zone:
Asaleo Care Ltd (ASX: AHY)
According to a note out of Citi, its analysts have retained their buy rating and $1.30 price target on this personal care products company's shares. The broker believes the company is well-positioned to benefit from the panic buying during the coronavirus pandemic and lower pulp prices. It also likes the company due to its strong balance sheet and the decent yield on offer with its shares. Though, it has warned that stockpiling could lead to softening sales in the future. I think Citi makes some good points with Asaleo Care.
National Australia Bank Ltd (ASX: NAB)
Analysts at Credit Suisse have retained their outperform rating and $19.50 price target on this banking giant's shares. According to the note, the broker suspects there will be further remediation charges announced in the second half of FY 2020. This has led to a reduction in its earnings estimates for the near term. Nevertheless, a sharp pullback in its share price means that Credit Suisse is still a buyer of its shares at the current level. I agree with the broker on NAB and feel it would be a good option.
Nearmap Ltd (ASX: NEA)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted the price target on this aerial imagery technology and location data company's shares to $1.50. According to the note, the broker was previously expecting Nearmap to raise $30 million in FY 2021. However, now that it is aiming to be cash flow breakeven in FY 2020, it has removed this risk from its model. Furthermore, while it acknowledges the broad economic slowdown in its key markets, it feels comfortable Nearmap will achieve its forecasts over the next couple of years. I agree with Goldman and would be a buyer of its shares.