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:
Costa Group Holdings Ltd (ASX: CGC)
Analysts at UBS have retained their buy rating and $3.25 price target on this horticulture company's shares. According to the note, the broker expects Costa to provide investors with a positive update at its annual general meeting next week. It feels current trading conditions support its earnings forecasts and there could even be upside risk to them if weather conditions and foreign exchange remain favourable. I think UBS makes some great points, but I would suggest you wait for the update before making a move.
IDP Education Ltd (ASX: IEL)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and trimmed the price target on IDP Education's shares slightly to $18.00. According to the note, the broker expects volumes to remain constrained across both its student placement and English language testing businesses in the second half of FY 2020 and the first half of FY 2021. However, it is very positive on its long term prospects and has forecast a big rebound in earnings in FY 2022. I agree with Goldman Sachs and would be a buyer of its shares.
Newcrest Mining Limited (ASX: NCM)
According to a note out of Citi, its analysts have retained their buy rating and lifted the price target on this gold miner's shares to $35.00. Citi lifted its price target on the belief that the gold price will be stronger than expectations over the long term. It feels this will be supportive of Newcrest's shares. While I think Citi is spot on and Newcrest is quality miner, I think there are better value option in the industry.
