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 buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:
Corporate Travel Management Ltd (ASX: CTD)
According to a note out of Credit Suisse, it has initiated coverage on this corporate travel specialist’s shares with an outperform rating and $30.00 price target. The broker appears confident that Corporate Travel Management is well-positioned to continue growing strongly over the medium term. Its analysts have forecast earnings increasing at a double-digit CAGR through to FY 2021. Whilst I do have concerns due to short sellers targeting the company, I agree with Credit Suisse on its growth potential and feel it could be a good option for investors.
Praemium Ltd (ASX: PPS)
A note out of Goldman Sachs reveals that its analysts have upgraded this investment platform provider’s shares from neutral to a buy rating with a reduced price target of 52 cents. According to the note, the broker made the move on valuation grounds after a sharp share price decline following the loss of a major client. And while Goldman acknowledges that the loss of ANZ Private is a concern, it remains positive due to upgrades to its platform, its investment in additional sales and marketing capabilities, and recent customer wins. Whilst it wouldn’t be my first pick in the industry, its current valuation is attractive and could make it worth considering.
Webjet Limited (ASX: WEB)
Credit Suisse is also bullish on this online travel agent and has retained its outperform rating and $17.00 price target on its shares. According to the note, the broker has held firm with its recommendation despite news that its UK partner Thomas Cook is struggling significantly. Its analysts don’t believe investors should be concerned by the news and continue to expect the partnership to provide a solid earnings contribution in FY 2020. I agree with Credit Suisse on Webjet and think its share price weakness this week could be a buying opportunity.
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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 Praemium Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Praemium Limited and Webjet Ltd. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019