It was another busy week for 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:
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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. Morgan Stanley has been looking at the healthcare sector and is seeing opportunities for investors. This follows an underperformance in the sector over the past 12 months. One of its top picks is CSL, which it highlights is trading at a discount to 10-year average multiples. The broker thinks this makes it a good time to buy, especially given its belief that CSL is well-placed to deliver strong earnings growth over the next three years thanks to margin expansion in the key CSL Behring business. The CSL share price ended the week at $254.00.
Gold Road Resources Ltd (ASX: GOR)
A note out of Bell Potter reveals that its analysts have retained their buy rating and $2.95 price target on this gold miner's shares. The broker notes that Gold Road's first quarter production is below expectations due to crusher maintenance and the failure of two conveyor belts. Although this is disappointing and the broker has reduced its production forecast slightly, this negative has been offset by an increase in its gold price assumptions. In addition, the broker remains positive on the company's outlook and feels it can still come close to reaching the middle of its guidance range in FY 2025. As a result, it feels that the company remains an attractive investment. Especially given strong spot gold prices and its growing unhedged gold production. The Gold Road share price was fetching $2.38 at Friday's close.
Qantas Airways Ltd (ASX: QAN)
Analysts at Goldman Sachs have retained their buy rating and $11.80 price target on this airline operator's shares. According to the note, Goldman highlights that Qantas' shares have fallen heavily this month. This has been driven by the release of disappointing trading updates from a number of US airlines. Goldman feels this this selling has been an overreaction, especially given how different the two markets are. It also reminds investors that Qantas provided an update of its own only a few weeks ago. And that update pointed to favourable trading conditions. Outside this, the broker continues to highlight that the Flying Kangaroo's earnings capacity has sustainably improved since COVID and justifies the significant re-rating in its share price. The Qantas share price ended the week at $9.02.
