Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

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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:

Lovisa Holdings Ltd (ASX: LOV)

According to a note out of Bell Potter, its analysts have retained their buy rating on this fashion jewellery retailer's shares with an improved price target of $36.00. Bell Potter has been reviewing the retail sector and continues to feel very bullish about Lovisa. In fact, the broker believes that the company's store network can grow even quicker in new markets than first thought after taking into account some recent data points from markets such as Netherlands, Ireland, Canada, and Peru. Bell Potter now estimates that Lovisa can grow its store network by 10% per annum between FY 2023 and FY 2034. In addition, its analysts highlight encouraging trends out of the ecommerce platforms in both Australia and the US compared to its key rival. Combined, this has led to the broker boosting its earnings estimates and valuation accordingly. The Lovisa share price ended the week at $31.77.

Qube Holdings Ltd (ASX: QUB)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this logistics solutions company's shares with an improved price target of $3.95. This follows Qube's investor day event, which went down well with the broker. Goldman notes that the company's Patrick operation is unmatched and has an advantage at Port Botany via automation, its 1,400m quay line, and efficiencies. In addition, the broker was pleased to see that trading conditions are improving and execution risks at Moorebank are reducing. Overall, this has led to the broker lifting its earnings estimates for the coming years and boosting its valuation. The Qube share price was fetching $3.58 at Friday's close.

REA Group Ltd (ASX: REA)

Analysts at Morgan Stanley have reaffirmed their overweight rating and $210.00 price target on this property listings company's shares. This follows the release of REA Group's quarterly update, which revealed very strong sales and earnings growth from the realestate.com.au operator. Morgan Stanley notes that the company slightly outperformed analyst expectations but significantly outperformed its closest rival. This is cementing its market leadership position further, which bodes well for the future and appears to support Morgan Stanley's forecast for further strong growth in the coming years. The REA share price ended the week at $187.32.

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Lovisa, and REA Group. The Motley Fool Australia has recommended Lovisa and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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