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:
CSL Ltd (ASX: CSL)
According to a note out of Morgan Stanley, its analysts have initiated coverage on this biotechnology giant's shares with an overweight rating and $313.00 price target. The broker is seeing opportunities in the healthcare sector following an underperformance over the past 12 months. In addition, it highlights that CSL's shares are trading at a discount to their 10-year average multiples. This is despite Morgan Stanley expecting strong earnings growth from the company over the next three years thanks to margin expansion in the key CSL Behring business. The CSL share price is trading at $253.27 on Friday.
Judo Capital Holdings Ltd (ASX: JDO)
A note out of Morgans reveals that its analysts have upgraded this small business lender's shares to an add rating with a $2.08 price target. The broker made the move following significant share price weakness after a selloff in the banking sector and the sell-down of two early investors. Morgans feels that this has created a buying opportunity. Though, perhaps not for traditional bank investors as Judo is growth-focused and doesn't pay dividends. But it could certainly be worth buying according to Morgans. That's because if management can deliver on its growth plans, the broker believes that it could generate substantial returns for investors in the coming years. The Judo Capital share price is fetching $1.74 at the time of writing.
Webjet Group Ltd (ASX: WJL)
Analysts at Ord Minnett have retained their buy rating on this online travel booker's shares with an improved price target of $1.59. According to the note, the broker was pleased with Webjet's investor day update. It highlights that management is aiming to grow its total transaction value (TTV) to $3.2 billion by FY 2030. This will be double current levels. In addition, with management targeting an EBITDA margin of at least 27%, this bodes well for its earnings growth over the coming years. While some of what is being planned has led to near term earnings downgrades, it thinks investors will be rewarded for being patient. Based on Ord Minnett's forecasts, Webjet shares are currently being valued at 10x FY 2026 earnings. The Webjet share price is trading at 54 cents on Friday.
