Brokers have named A2 Milk Company Ltd (ASX:A2M) and these ASX shares as buys this week. Here’s why they are bullish on them…
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Australia’s top brokers have been busy adjusting their estimates and recommendations 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 shares are in the buy zone:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Morgans, its analysts have retained their add rating but reduced their price target on this infant formula and fresh milk company’s shares to $17.28. This follows the release of an update at its annual general meeting earlier this week. While Morgans has concerns over a2 Milk’s ability to achieve its guidance in FY 2021, it believes the weakness it is experiencing now is only temporary. In addition to this, it sees the recent pullback in the a2 Milk share price as a buying opportunity for investors. The company’s shares are trading at $13.88 this afternoon.
Aventus Group (ASX: AVN)
A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted the price target on this retail centre operator’s shares to $2.93. The broker was pleased with Aventus’ guidance for FY 2021, which was broadly in line with its own estimates. In addition to this, Macquarie likes Aventus due to its favourable tenant mix. It is also expecting the company to pay a full year distribution of 16.7 cents per share. Based on the current Aventus share price of $2.70, this equates to a generous 6.2% distribution yield.
SEEK Limited (ASX: SEK)
Analysts at Credit Suisse have retained their outperform rating and lifted their price target on this job listings company’s shares to $28.50. This follows the release of an update by SEEK this week at its annual general meeting. SEEK has lifted its guidance after a stronger than expected rebound in its performance across a number of markets. This update went down well with Credit Suisse, underpinning its price target increase. The SEEK share price is changing hands for $25.49 on Friday.
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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended AVENTUS RE UNIT and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.