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:
Aristocrat Leisure Ltd (ASX: ALL)
According to a note out of Bell Potter, its analysts have retained their buy rating and $83.00 price target on this gaming technology company's shares. The broker highlights that Aristocrat's Phoenix Link game has been growing ahead of expectations. It notes that the the game has grown to 750 units in the Eilers & Krejcik (EK) database after just four months. This is a record pace and means it is on track to exceed the install base growth of the combined top 3 contributors in FY 2023. Bell Potter believes this could signal possible consensus upgrades to FY 2025 estimates. The Aristocrat share price ended last week at $61.15.
Qantas Airways Ltd (ASX: QAN)
A note out of Goldman Sachs reveals that its analysts retained their buy rating and $11.80 price target on this airline operator's shares. The broker highlights that Qantas's shares have being impacted by renewed volatility in US airline stocks following recent updates. While there are demand concerns over the Pacific, the broker has been speaking to its US airline analyst, who pointed to industry discipline that should allow for a supply response to protect profits. In light of this, the broker remains positive on Qantas, particularly given how different the two markets are. In addition, it reminds investors that it expects Qantas' sustainably improved earnings capacity to provide a solid foundation for the next stage of growth from its fleet renewal program. The Qantas share price ended the week at $8.43.
Sonic Healthcare Ltd (ASX: SHL)
Another note out of Goldman Sachs reveals that its analysts have initiated coverage on this healthcare company's shares with a buy rating and $32.20 price target. According to the note, the broker believes that funding reforms in Germany are likely to be a headwind to growth. However, they are unlikely to come as a surprise to investors given the industry's track record of withstanding cuts to reimbursement. The good news, though, is that Goldman feels that the cost reduction initiatives in the US and synergies from the Swiss acquisitions will help offset this and deliver earnings ahead of consensus estimates in the near term. The Sonic share price was fetching $26.60 at Friday's close.
