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:
Allkem Ltd (ASX: AKE)
According to a note out of Goldman Sachs, its analysts have initiated coverage on this lithium miner's shares with a buy rating and $15.20 price target. With the broker expecting lithium prices to fall materially in the coming years, it feels investors should be very selective with where they invest. It likes Allkem due to its attractive valuation at 1x NAV and its plan to grow production 4x by FY 2027. The Allkem share price is trading at $13.02 on Friday.
Qantas Airways Limited (ASX: QAN)
Analysts at Morgans have initiated coverage on this airline operator's shares with an add rating and $8.50 price target. Following Qantas' latest update, the broker believes the discount being applied to its shares is unwarranted. Its analysts feel that solid value exists in Qantas' shares given their expectation for further EBITDA growth over FY24/25 and pent-up travel demand underpinning a healthy demand environment for some time. The Qantas share price is fetching $6.21 this afternoon.
Rio Tinto Ltd (ASX: RIO)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating on this mining giant's shares with an improved price target of $125.00. This follows an increase in spot commodity prices in recent weeks, which has led to an upgrade to its earnings estimates for the miner. The Rio Tinto share price is trading at $117.50 on Friday afternoon.
