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 ASX 200 shares are in the buy zone:
Altium Limited (ASX: ALU)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $40.00 price target on this electronic design company's shares following its full year results. The broker notes that its revenue guidance for FY 2021 was short of expectations, but its EBITDA guidance was in line with its estimates. The broker was also pleased to see management reiterate its goal of growing revenue to US$500 million with 100,000 subscriptions. I agree with Morgan Stanley and feel Altium is a great long term option.
Coles Group Ltd (ASX: COL)
Analysts at Goldman Sachs have retained their buy rating and $20.00 price target on this supermarket giant's shares. According to the note, Coles delivered a full year result which was largely in line with its expectations. The broker also notes that trading in FY 2021 has started positively. Particularly with its online sales growth. Another positive was that its margin contraction was lower than the broker expected. I think Goldman Sachs is spot on with Coles and would be a buyer of its shares.
Westpac Banking Corp (ASX: WBC)
Another note out of Goldman Sachs reveals that its analysts have retained their buy rating but trimmed their price target on this banking giant's shares slightly to $19.83. According to the note, Goldman was pleased with the headway the bank is making on mortgage deferrals and feels its balance sheet is strong. In addition to this, Goldman estimates that Westpac's shares offer a ~6% FY 2021 dividend yield at the current level. This means its shares offer a very compelling potential total return over the next 12 months. I would agree with the broker on this one too and feel Westpac could be a good option for patient investors.
