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:
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ALS Ltd (ASX: ALQ)
According to a note out of Macquarie, its analysts have retained their outperform rating on this testing services company's shares with an improved price target of $18.20. Macquarie is forecasting an earnings per share compound annual growth rate of 12% for the next three years. It notes that this compares favourably to the market and peers. And while its shares are trading at a small premium to global peers, it thinks this is justified and highlights that this has been the case in prior minerals upcycles. Macquarie also points out that ALS has its $350 million capital raise to fund four organic lab capacity expansions to support its long term growth. The ALS share price is trading at $16.40 on Friday afternoon.
Elders Ltd (ASX: ELD)
A note out of Bell Potter reveals that its analysts have retained their buy rating and $9.10 price target on this agribusiness company's shares. Bell Potter highlights that the Elders share price has underperformed since the announcement of its proposed acquisition of Delta Agribusiness. It feels this has created a buying opportunity for investors. Especially given its expectation that existing initiatives and leverage to cattle prices will drive double digit earnings per share growth through to FY 2027. In addition, it thinks the Delta Agribusiness acquisition could accelerate this growth profile if it is approved. Though, alternatively, the capital raised for the acquisition could also be used to boost its growth if it is denied. The Elders share price is fetching $6.15 at the time of writing.
Judo Capital Holdings Ltd (ASX: JDO)
Analysts at Morgans have put an accumulate rating and $1.75 price target on this small business lender's shares. According to the note, the broker was pleased with the company's investor day update. It highlights that the update has given it increased confidence in the strength of Judo Capital's management, business model, and earnings growth outlook. It also notes that its guidance remains in place and that an uptick in lending in May was good to see after a weaker than expected period earlier this year. The Judo Capital share price is trading at $1.48 on Friday afternoon.
