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:
Altium Limited (ASX: ALU)
Analysts at Morgan Stanley have initiated coverage on this electronic design software company's shares with an overweight rating and $40.00 price target. According to the note, the broker thinks Altium is a great option in the current environment. This is due to the strong demand for its platform and its leverage to the proliferation of connected devices. I agree with Morgan Stanley and feel Altium is one of the best options on the market right now.
Brickworks Limited (ASX: BKW)
According to a note out of Citi, its analysts have upgraded this building products company's shares to a buy rating but cut the price target on them to $14.20. The broker has been looking at building approvals and notes that they were solid up until February. It believes this will support Brickworks sales through to the December quarter. After which, the cyclical slowdown in residential demand could weigh on its performance. However, due to the cash flows from its property trust and its investment income, it believes Brickworks' dividend could be maintained. I think Citi makes some good points and the recent collapse in the company's share price could make it worth considering.
Wesfarmers Ltd (ASX: WES)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this conglomerate's shares to $40.90. According to the note, the broker was pleasantly surprised by the strong sales growth achieved by the Bunnings and Officeworks businesses during the third quarter. And while it was disappointed with the deteriorating performance of the Target business, it appears optimistic that its review could be a positive. I agree with Macquarie and would be a buyer of Wesfarmers' shares.
