It has been another busy week for many of 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 right now:
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Bega Cheese Ltd (ASX: BGA)
According to a note out of Bell Potter, its analysts have retained their buy rating on this diversified food company's shares with an improved price target of $5.75. This follows the release of the company's full year results, which were in line with guidance and ahead of the broker's forecasts. Bell Potter believes this positive form can continue in FY 2025 and has lifted its estimates to reflect this. In light of this, it believes that Bega Cheese's shares trade at an unreasonably high discount to historical multiples and its dairy FMCG peer group. Particularly given that it has exited FY 2024 with the balance sheet in its best shape since FY 2019 and with a pathway to its FY 2028 EBITDA target of $250 million+. The Bega Cheese share price is trading at $4.97 on Friday.
IDP Education Ltd (ASX: IEL)
A note out of Morgans reveals that its analysts have upgraded this language testing and student placement company's shares to an add rating with an improved price target of $18.20. This follows the release of a full year result that was impacted by regulatory changes. The broker thinks that FY 2025 is likely to be the trough year for student flows, impacted by tighter policies and the associated uncertainty. As a result, it expects IDP Education's earnings to fall ~12%. However, it believes it will be onwards and upwards from there, making now a good time to snap up its shares. Especially after heavy declines over the past 12 months. The IDP Education share price is fetching $16.48 this afternoon.
Qantas Airways Limited (ASX: QAN)
Analysts at Goldman Sachs have retained their conviction buy rating and $8.05 price target on this airline operator's shares. According to the note, the broker was pleased with Qantas' performance during FY 2024 and believes it is supportive of its bullish view on the stock. Its investment thesis is based on its belief that Qantas' transformation means that its earnings have been sustainably reset higher and its valuation doesn't yet reflect this. It feels this was reinforced by a second half improvement in key operating metrics that precludes the need for a substantial uplift in customer investment. The Qantas share price is trading at $6.64 at the time of writing.
