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:
Judo Capital Holdings Ltd (ASX: JDO)
According to a note out of Morgans, its analysts have retained their add rating on this small business lender's shares with an improved price target of $1.92. The broker has been looking at the banking sector and revealed that it continues to believe that the big four banks are trading on stretched valuations. As a result, its analysts think that Judo Capital would be a better way to gain exposure to this side of the market. Particularly given its strong growth potential. For example, it expects Judo Capital to grow its profit before tax by 70% and 42% in FY 2026 and FY 2027, respectively. The Judo Capital share price is trading at $1.70 on Friday.
Light & Wonder Inc. (ASX: LNW)
A note out of Goldman Sachs reveals that it has retained its buy rating on the poker machine developer's shares with a trimmed price target of $172.20. The broker notes that its fundamental positive view on Light & Wonder is unchanged despite the injunction placed on its Dragon Train game. It believes the company remains well positioned to gain market share across premium leased, outright sale, and digital content. It also notes that management has reiterated its FY 2025 AEBITDA target of US$1.4 billion, which is ahead of consensus estimates. The Light & Wonder share price is fetching $140.99 at the time of writing.
REA Group Ltd (ASX: REA)
Analysts at Bell Potter have retained their buy rating on this property listings company's shares with an improved price target of $239.00. The broker notes that the realestate.com.au operator released a first quarter update at its annual general meeting this week. It was pleased with the update, noting that national new listings for were up 7% year on year for the quarter. In addition, it recorded the highest monthly volume for September since 2015, underpinned by ongoing outperformance in key Sydney/Melbourne markets. And with high levels of stock on the market being supported by robust demand, immigration, and stable interest rates, the broker remains positive on its outlook and thinks investors should be snapping up shares today. REA share price is trading at $218.73 today.
