With most brokers taking a break over the Christmas and New Year holiday period, research notes are few and far between right now.
But don't worry! Listed below are three recent broker buy recommendations that still have plenty of upside potential.
Here's why brokers think these ASX shares are in the buy zone:
Qantas Airways Limited (ASX: QAN)
According to a note out of Morgan Stanley, its analysts retained their overweight rating on this airline operator's shares with an improved price target of $10.50. The broker made the move after adjusting its estimates to reflect the benefit of lower fuel prices. Morgan Stanley thinks that lower prices are now a tailwind for the Flying Kangaroo and come at a time when travel demand remains strong. As a result, the broker believes there are now upside risks to expectations. In addition, it sees scope for Qantas to undertake another on-market share buyback in FY 2025. This is on top of the broker's expectation for Qantas to commence dividend payments this financial year. The Qantas share price is trading at $9.09 on Friday.
TechnologyOne Ltd (ASX: TNE)
A note out of UBS revealed that its analysts retained their buy rating on this enterprise software provider's shares with a vastly improved price target of $33.80. According to the note, the broker was very pleased with TechnologyOne's performance in FY 2024. UBS notes that the company's profit before tax was well ahead of expectations and driven by strong recurring revenue growth. Looking ahead, the broker is confident that more of the same is coming. It suspects that TechnologyOne's profit before tax could grow at approximately 20% per annum for the next five years. In light of this, UBS believes that the tech stock deserves to trade with a premium valuation. The TechnologyOne share price is fetching $30.89 at the time of writing.
Web Travel Group Ltd (ASX: WEB)
Analysts at Shaw and Partners retained their buy rating on this business to business travel technology company's shares with an increased price target of $6.60. According to the release, this followed the release of the company's half year results in November. Shaw and Partners was pleased with the results and with management's commentary on its outlook. This was particularly the case with the reiteration of its medium term total transaction value target of $10 billion. Another positive was the company's decision to return funds to shareholders via a $150 million share buyback. Overall, Shaw and Partners has boosted its earnings estimates and valuation accordingly. It believes this leaves the company's shares trading at an attractive level. The Web Travel share price is trading at $4.67 on Friday morning.
