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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BHP Group Ltd (ASX: BHP)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $43.50 price target on this mining giant's shares. The broker is feeling confident ahead of the release of the Big Australian's results this month. In fact, it is expecting BHP to deliver earnings per share ahead of consensus estimates thanks to its copper operations. This is expected to underpin a larger than forecast dividend for the second of FY 2025. Morgan Stanley has pencilled in a 53.4 US cents per share dividend for the half, which is ahead of the consensus estimate of 51.5 US cents per share. The BHP share price is trading at $40.27 on Friday afternoon.
Light & Wonder Inc (ASX: LNW)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this gaming technology company's shares with a reduced price target of $178.00. This follows the release of a mixed second quarter update earlier this week. Bell Potter was particularly disappointed with its earnings guidance downgrade. However, it feels that this relates to tariff issues and is not structural. As a result of this, robust install base growth in the quarter, and strong game performance, it believes there is evidence that the thesis of market share gains in the lucrative premium leased segment remains intact. The Light & Wonder share price is fetching $77.87 at the time of writing.
Rea Group Ltd (ASX: REA)
Another note out of Bell Potter reveals that its analysts have upgraded this property listings company's shares to a buy rating with an improved price target of $284.00. The broker was pleased with the realestate.com.au operator's full year results and feels confident its strong form can continue. In fact, the broker is expecting ~20% earnings per share growth in both FY 2026 and FY 2027. And thanks to its strong free cash flow profile, it notes that it is able to make sustained platform reinvestment to target double-digit yield growth through the cycle. This includes a next-gen listings platform to drive CX and higher quality leads to vendors and value to agents. The REA share price is trading at $242.08 on Friday.
