Top brokers have named Zip Co Ltd (ASX:Z1P) and these ASX shares as buys. Here’s why they are bullish on them…
The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia. –
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 shares are in the buy zone:
Baby Bunting Group Ltd (ASX: BBN)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $5.50 price target on this baby products retailer’s shares. The broker suspects that Baby Bunting could outperform expectations in the first half of FY 2021 due to market share gains and its strong online presence. In addition to this, the broker feels it is in a stronger position than its competitors due to its size. This provides it with better quality customer data and strong buying power with suppliers. The Baby Bunting share price is trading at $5.25 this afternoon.
Megaport Ltd (ASX: MP1)
Analysts at UBS have retained their buy rating but trimmed the price target on this global elastic interconnection services provider’s shares to $15.45. This follows the release of its second quarter update earlier this week. Although its ports growth was softer than UBS was expecting, it notes that its overall performance has improved since the first quarter. Furthermore, the broker remains positive on the future and expects the company to benefit greatly from the structural shift to the cloud. The Megaport share price is fetching $12.17 on Wednesday.
Zip Co Ltd (ASX: Z1P)
A note out of Morgans reveals that its analysts have retained their add rating but reduced their price target on this buy now pay later provider’s shares to $7.86. According to the note, the broker has trimmed its FY 2021 estimates to account for softer margins, but lifted its FY 2022 estimates to reflect its belief that its sales will be stronger than previously expected. Morgans believes the buy now pay later industry is well-placed for growth in the current environment. The Zip share price is trading at $5.99 this afternoon.
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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 and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.