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)
Analysts at Goldman Sachs have retained their buy rating on this lithium miner's shares with a lowered price target of $14.40. While the broker felt that Allkem's quarterly update was a little on the mixed side, it remains as bullish as ever. It feels that the company's long-term organic growth optionality remains undervalued trading at ~0.8 times NAV. This compares to the peer average of ~1.1 times. The Allkem share price is trading at $10.18 this afternoon.
Coles Group Ltd (ASX: COL)
According to a note out of Citi, its analysts have retained their buy rating on this supermarket giant's shares with a trimmed price target of $17.50. This follows the release of a first quarter update which fell a touch short of expectations. Nevertheless, the broker continues to see plenty of value in its shares at the current level and thus retains its buy rating. The Coles share price is fetching $15.33 on Friday.
Liontown Resources Ltd (ASX: LTR)
A note out of Bell Potter reveals that its analysts have upgraded this lithium developer's shares to a speculative buy rating with a reduced price target of $2.75. Bell Potter has revised its valuation to account for lower lithium prices, the recent capital raising, and its cost guidance. But even after doing this it still sees huge upside potential and suspects the market will gradually re-rate its shares to higher multiples as project development risks reduce. The Liontown share price is trading at $1.70 today.
