It has been another busy week for Australia's top brokers. This has led to the release of a 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:
Elders Ltd (ASX: ELD)
According to a note out of Bell Potter, its analysts have retained their buy rating on this agribusiness company's shares with a trimmed price target of $9.10. This follows the release of a trading update which revealed that the company has been struggling in FY 2024. So much so, that its earnings before interest and tax are now expected to be $120 million to $140 million, which was well short of the consensus estimate of $169 million. While this is disappointing, the broker remains positive. It notes that soil moisture profiles in key winter cropping regions have improved and livestock activity levels have firmed (in value) from levels seen in the first quarter. In addition, it sees Elders as one of the few ASX shares with exposure to the El Nino/La Nina transition. The Elders share price is trading at $8.36 on Friday.
NextDC Ltd (ASX: NXT)
A note out of UBS reveals that its analysts have retained their buy rating and $20.10 price target on this data centre operator's shares. This follows news that the company is undertaking a $1.3 billion capital raising to support the accelerated development and fit outs of its core Sydney and Melbourne data centre portfolio. The broker interprets this capital raising as evidence that demand is not only very strong, but is accelerating. The NextDC share price is currently in a trading halt while it completes the institutional component of this capital raising. But when it last traded it was fetching $16.71.
Northern Star Resources Ltd (ASX: NST)
Analysts at Macquarie have retained their outperform rating and $17.00 price target on this gold miner's shares. This follows the release of Northern Star's quarterly sales update this week. Macquarie wasn't overly impressed with the company's performance during the quarter, noting that its gold sales fell short of expectations and its free cash flow was softer than it was expecting. Nevertheless, it is pleased with its strong start to the fourth quarter and appears optimistic that this will allow management to deliver on its guidance for the full year. Particularly given its access to the higher grades and the first ore at Wonder underground in the Yandal production centre. The Northern Star share price is trading at $15.36 this afternoon.
