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:
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Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Citi, its analysts have retained their buy rating and $51.00 price target on this gaming technology company's shares. This follows the release of a first half result which came in well ahead of the broker's expectations. This was driven largely by lower than expected costs and a strong performance from its Rest of World segment. The latter offset a slightly softer than expected performance in the United States. Outside this, the broker is supportive of the company's plan to look at the sale of its digital assets given how their growth has slowed. Though, the price it receives for these assets will be key. All in all, the broker remains very positive on the company and sees value in its shares despite yesterday's rally. The Aristocrat Leisure share price is trading at $45.71 today.
Graincorp Ltd (ASX: GNC)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this grain exporter's shares with an improved price target of $9.50. This follows the release of a half year result that was modestly ahead of the broker's expectations. Bell Potter was also pleased to see that its FY 2024 guidance remains unchanged and that its through the cycle EBITDA has been upgraded from $310 million to $320 million. This reflects the inclusion of the XF Australia feeds acquisition. But it may not stop there. It notes that its through the cycle earnings would likely lift on any new oilseed crush capacity, which is being investigated. The Graincorp share price is fetching $8.53 this afternoon.
Incitec Pivot Ltd (ASX: IPL)
Analysts at Goldman Sachs have retained their buy rating on this fertiliser and commercial explosives company's shares with an improved price target of $3.35. Goldman was pleased with Incitec Pivot's half year results, noting that there was solid APAC pricing momentum. In addition, it highlights that the Fertiliser sale process is ongoing with PT Pupuk Kalimantan Timur and that management has flagged a transformation program. The latter is expected to target pricing, cost and working capital disciplines. But importantly, it believes the program could represent upside to consensus estimates. The Incitec Pivot share price is trading at $2.92 on Friday.
