It was another busy week for Australia's top brokers. This led to the release of a large number of broker notes.
Three ASX 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:
Lottery Corporation Ltd (ASX: TLC)
According to a note out of Citi, its analysts have initiated coverage on this lottery company's shares with a buy rating and $5.70 price target. Although Citi concedes that lottery earnings can be volatile depending on the number of large jackpots, it also highlights that these earnings are defensive over time and have no correlation to the business cycle. It also feels that the market underestimates the uplift to the contribution margin following the increase in the commission rate and cut to third party digital commissions. The Lottery Corp share price was trading at $4.99 on Friday.
Qantas Airways Limited (ASX: QAN)
Analysts at Morgan Stanley have retained their overweight rating and $8.50 price target on this airline operator's shares. This follows Qantas' investor day event at the end of last month. Morgan Stanley was pleased with what it heard at the event and believes that the company's higher earnings are sustainable. As a result, it feels consensus expectations are too low. The Qantas share price was fetching at $6.68 today.
Sayona Mining Ltd (ASX: SYA)
A note out of Macquarie reveals that its analysts have retained their outperform rating on this lithium developer's shares with a reduced price target of 25 cents. Macquarie was a touch surprised that Sayona Mining decided to undertake a $200 million capital raising last month. It felt its cash balance was already sufficient. Nevertheless, the broker remains positive and sees value in its shares even after accounting for this dilution. The Sayona Mining share price ended the week at 19 cents.
