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:
According to a note out of
Citi, its analysts have retained their
buy rating and lifted the price target on this fashion retailer’s shares to $4.00. This follows the announcement of the acquisition of UK-based plus-sized women’s fashion retailer Evans this week. The broker is expecting the acquisition to be meaningfully accretive to earnings from next year and suspects it could help drive margin expansion. The City Chic share price is changing hands for $3.79 this afternoon.
ASX 200 drops over 1%
Tristan Harrison | December 22, 2020 4:33pm |
More on:
6,600 points.
Magellan announced it’s buying a 10% stake in GYG for $86.8 million. GYG is an Australian based quick service restaurant chain specialising in made to order, fresh Mexican food with 147 restaurants across Australia, Singapore, Japan and the US.
GYG is led by founder and CEO Steven Marks as well as chairman Guy Russo, who used to be the CEO of McDonalds as well as Kmart and Target.
Hamish Douglass, the chairman of Magellan, said: “We are extremely pleased to become a shareholder in GYG. Magellan has deep investment experience in the quick service restaurant industry and we believe Magellan can both add and gain considerable insights as a major investor and supportive shareholder. GYG is a world class business with enormous growth potential and represents a highly attractive investment opportunity for our principal investments business.”