It was 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:
Coles Group Ltd (ASX: COL)
According to a note out of Bell Potter, its analysts have initiated coverage on this supermarket giant's shares with a buy rating and $21.55 price target. The broker points out that Coles has been growing its earnings and dividend at a solid rate since FY 2020. The latter has been driven by Coles paying out 81% of cumulative profits in dividends over the period. Bell Potter believes this trend will continue through to at least FY 2027 and be underpinned by the delivery on business improvement initiatives (Simplify & Save) and recent capital initiatives. In light of Coles' attractive growth profile, its strong cash generation, and valuation discount to rival Woolworths Group Ltd (ASX: WOW), Bell Potter thinks that Coles is a top pick for investors now. The Coles share price ended the week at $19.22.
Hub24 Ltd (ASX: HUB)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating on this investment platform provider's shares with an improved price target of $62.00. Morgan Stanley notes that Hub24 delivered a strong result in FY 2024. The good news is that it believes more of the same is coming in the near term. This is because of its strong outlook, structural tailwinds, and growing net inflows. Morgan Stanley expects this to underpin solid earnings per share growth through to at least FY 2027. It also thinks Hub24 is well placed to win more institutional mandates and outperform its funds under management guidance. As a result, it feels that now is a good time to invest. The Hub24 share price was fetching $57.06 at Friday's close.
New Hope Corporation Ltd (ASX: NHC)
Analysts at Morgans have upgraded this coal miner's shares to an add rating with a trimmed price target of $5.20. According to the note, the broker believes that the company's shares have been sold off unnecessarily due to bearish sentiment in the steel industry. Morgans highlights that this leaves them trading at a significant discount to their net present value for the first time since 2023. In light of this, the broker feels that they are now genuinely cheap. Particularly given New Hope's defensive attributes and broader hard-asset base, which make it better suited to buy and hold or value investors. The New Hope share price ended the week at $4.75.
