Image source: Getty Images
It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.
Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:
Coles Group Ltd (ASX: COL)
According to a note out of Citi, its analysts have retained their buy rating and $17.50 price target on this supermarket giant’s shares. The broker believes that Coles’ accelerated technology rollout should meaningfully lower theft rate in second half. Citi notes that the technology will be rolled out to ~30% of its store portfolio. Its analysis suggests this will address ~70% of its theft exposure. In light of this, it believes the drag from theft on its gross margin will begin to materially reverse in during the half. The Coles share price is trading at $15.42 on Friday.
Liontown Resources Ltd (ASX: LTR)
A note out of Macquarie reveals that its analysts have retained their outperform rating and $2.70 price target on this lithium developer’s shares. The broker acknowledges that it has been a tough year for lithium developers. However, it believes it is worth sticking with the company. Especially given its M&A appeal. The Liontown share price is fetching $1.68 this afternoon.
Analysts at Goldman Sachs have retained their conviction buy rating with an improved price target of $148.00. The broker believes that Xero will deliver a strong half year result this month. It is forecasting a 21% lift in revenue to NZ$800 million and profit after tax of NZ$71 million. The latter is 9% ahead of consensus estimates. The Xero share price is trading at $112.38 on Friday afternoon.
