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:
Australian Clinical Labs Ltd (ASX: ACL)
According to a note out of Goldman Sachs, its analysts have retained their buy rating and increased their price target on this pathology company's shares to $6.60. Goldman notes that Australian Clinical Labs has upgraded its first half guidance for the fourth time thanks to strong demand for COVID-19 testing and a solid performance from its base business. The broker believes testing volumes could remain high for some time yet and expects the company to benefit greatly. The Australian Clinical Labs share price is trading at $5.81 on Thursday.
Lovisa Holdings Ltd (ASX: LOV)
A note out of UBS reveals that its analysts have initiated coverage on this fashion jewellery retailer's shares with a buy rating and $21.25 price target. The broker likes Lovisa due to its strong position in a fragmented market. Furthermore, UBS expects the company to benefit from reopening tailwinds, operating leverage, and its store expansion. In respect to the latter, UBS sees significant room for Lovisa to expand its store network globally in the future. The Lovisa share price is fetching $19.47 this afternoon.
Rio Tinto Limited (ASX: RIO)
Analysts at Citi have retained their buy rating and $115.00 price target on this mining giant's shares. This follows news that Rio Tinto has acquired the Rincon Lithium project in Argentina for US$825 million. Citi notes that the project has the potential to be a low cost, low carbon footprint brine project of 50ktpa LCE. The broker appears to be a fan of the move and feels it confirms Rio Tinto's ambition to be a serious player in lithium/battery materials. The Rio Tinto share price is trading at $99.32 today.
