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:
Austal Ltd (ASX: ASB)
According to a note out of Bell Potter, its analysts have initiated coverage on this shipbuilder's shares with a buy rating and $3.10 price target. Bell Potter is positive on the company due to its long pipeline of work that looks set to keep it busy for the next decade. In addition, with defence spending on the rise, the broker feels the company is well-placed to benefit. The Austal share price is trading at $2.41 this afternoon.
BHP Group Ltd (ASX: BHP)
A note out of Macquarie reveals that its analysts have retained their outperform rating and $52 price target on this mining giant's shares. This follows an update on its decarbonisation plans, which remain on track. The broker expects this to be well received by the market. Outside this, Macquarie remains positive on the miner's outlook and expects its strong free cash flow generation to underpin attractive dividends. The BHP share price is fetching $44.67 today.
NextDC Ltd (ASX: NXT)
Analysts at Goldman Sachs have retained their buy rating and $14.96 price target on this data centre operator's shares. According to the note, the broker believes a recent update from one of its peers supports its positive view on the stock. This is particularly the case around the benefits of artificial intelligence in driving demand (hyperscale & co-location) within the Australian data centre market. The NextDC share price is trading at $12.32 on Friday.
