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:
Codan Ltd (ASX: CDA)
According to a note out of Goldman Sachs, its analysts have initiated coverage on this metal detector manufacturer's shares with a buy rating and $18.00. The broker considers Codan to be a high-quality electronics company with multiple levers available to grow both its metal detection and communication segments. It notes that its Zetron communications business has exposure to US$10 billion to US$15 billion in required USA government funding and its Tactical Communications business is supported by a favourable military spending environment and general industry tailwinds. Whereas the core Metal Detection business is benefiting from market share gains supported by expansion of distribution points and continued product development. The Codan share price is trading at $15.70 on Friday morning.
Deep Yellow Ltd (ASX: DYL)
A note out of Bell Potter reveals that its analysts have retained their speculative buy rating on this uranium developer's shares with a trimmed price target of $1.70. This follows news that the company has delayed its final investment decision for the Tumas uranium project in Namibia. While disappointed with the delay, the broker remains positive. Particularly given its belief that Deep Yellow is attractively positioned in a rising uranium bull market and capable of delivering the next wave of supply into an increasingly tight market. The Deep Yellow share price is fetching $1.05 at the time of writing.
James Hardie Industries plc (ASX: JHX)
Another note out of Bell Potter reveals that its analysts have initiated coverage on this building materials company's shares with a buy rating and $64.00 price target. The broker highlights that James Hardie is the world's largest producer of fibre cement and has built and maintained market leadership through significant R&D investment, aggressive plant expansions (which ensures low unit costs), and the realisation of a powerful marketing machine. It notes that the latter underpins James Hardie's widespread brand recognition. Overall, the broker sees James Hardie as one of the most defensive and high-quality companies leveraged to US housing. The James Hardie share price is currently trading at $50.86 on Friday morning.
