With most brokers taking a break over the holiday period, research notes are few and far between right now.
But don't worry because 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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts retained their buy rating on this infant formula company's shares with an improved price target of $7.15. This followed the release of a strong trading update from A2 Milk at its annual general meeting late last year. Citi was pleased with the company's performance so far in FY 2025 and believes that its outlook is very positive. The latter is being supported by improving Chinese birth rates and market share gains in the country. In addition, the broker was pleasantly surprised to see that A2 Milk plans to start paying dividends in FY 2025. Citi has upgraded its revenue and earnings estimates for FY 2025 and pencilled in a dividend of approximately 15 cents per share. The A2 Milk share price is trading at $5.73 on Monday morning.
Codan Ltd (ASX: CDA)
A note out of Goldman Sachs revealed that its analysts initiated coverage on this metal detector manufacturer's shares with a buy rating and $18.00 price target. According to the note, the broker thinks Codan is a high-quality electronics company with multiple levers available to grow both its metal detection and communication segments. Goldman highlights that its Zetron communications business has exposure to US$10 billion to US$15 billion in required USA government funding, whereas its Tactical Communications business is supported by a favourable military spending environment and general industry tailwinds. In addition, the broker expects Codan's Metal Detection business to deliver market share gains supported by the expansion of distribution points and continued product development. The Codan share price is fetching $16.20 at the time of writing.
Iress Ltd (ASX: IRE)
Analysts at Wilsons upgraded this financial technology company's shares to an overweight rating with an $11.00 price target. According to the note, although Iress didn't upgrade its guidance last month as Wilsons had been expecting, it was still pleased with the company's update. The broker believes that it demonstrates that Iress' momentum is clear and improving, supported by equity market conditions and regulatory tailwinds. As a result, Wilsons sees value on offer with its shares and upgraded them to reflect this. The Iress share price is trading at $9.38 this morning.
