Brokers have named Afterpay Ltd (ASX:APT) and these ASX shares as buys this week. Here’s why they are bullish on them…
The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia. –
Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a number of broker notes.
Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:
Afterpay Ltd (ASX: APT)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating but trimmed the price target on this payments company’s shares to $159.00. This follows the release of the company’s half year results this week. The broker was impressed with the increasing frequency that customers are using its platform. It also notes that its Afterpay Money app is due to be released later this year and its European expansion should commence from next month. One thing that did fall short of the broker’s estimates was its active customers. This came in at 13.1 million, compared to its estimate of 13.6 million. This has led to a reduction in the broker’s sales estimates. The Afterpay share price is trading at $119.94 today.
Appen Ltd (ASX: APX)
Analysts at Ord Minnett have upgraded this artificial intelligence data services company’s shares to a buy rating with a reduced price target of $24.75. According to the note, Appen delivered a full year result the was largely in line with its estimates. And while it notes that trading conditions are tough, it believes its long term outlook is positive. This is thanks to the global trend of investment in artificial intelligence. In addition to this, following a pullback in its share price, it feels its shares are trading at an attractive level. The Appen share price is fetching $16.95 this afternoon.
Zip Co Ltd (ASX: Z1P)
A note out of Morgans reveals that its analysts have retained their add rating and lifted the price target on this buy now pay later provider’s shares to $12.10. This follows the release of its half year update. The broker appears surprised by Zip’s loss during the half but remains positive due to the strong momentum it is exhibiting across the business. Furthermore, Morgans believes its strong growth can continue for the foreseeable future. In afternoon trade the Zip share price is trading at $10.25.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.