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:
DroneShield Ltd (ASX: DRO)
According to a note out of Bell Potter, its analysts have retained their buy rating on this counter drone technology company's shares with a slightly reduced price target of $3.70. The broker believes the company's performance in the first half of FY 2025 demonstrates the significant growth that has occurred in the business during the past 12 months. This includes the acceleration of both the scale and also the frequency of contracts. And while Bell Potter was a touch disappointed that DroneShield didn't win the Australian government's Land156 contract, it isn't concerned. It also points out that this is just a very small slice of a huge sales pipeline that currently stands at $2.3 billion, with the majority (95%>) coming from overseas customers. The DroneShield share price ended the week at $3.30.
Guzman Y Gomez Ltd (ASX: GYG)
A note out of Morgans reveals that its analysts have retained their buy rating on this Mexican food focused quick service restaurant operator's shares with a reduced price target of $30.60. Morgans notes that it was disappointed with Guzman Y Gomez's full year results, highlighting that it was softer than expected. In addition, it points out that its trading update for the first quarter of FY 2026 was underwhelming. Nevertheless, the broker appears confident that improvements are on the way. This is thanks to a combination of menu innovation, daypart expansion, operational excellence, marketing, and digital initiatives. As a result of this, Morgans thinks that Guzman Y Gomez's margin guidance could end up proving conservative. In light of this, it feels that recent share price weakness is a buying opportunity for investors. The Guzman Y Gomez share price was fetching $25.24 at Friday's close.
Polynovo Ltd (ASX: PNV)
Analysts at Macquarie have retained their outperform rating on this medical device company's shares with a reduced price target of $2.00. According to the note, Macquarie was pleased with Polynovo's performance in FY 2025. It highlights the company's strong sales growth in both the US and Rest of the World segments. It was also pleased to see that MTX sales are accelerating and that its underlying profit was comfortably ahead of expectations. Looking ahead, Macquarie sees several near-term positive catalysts and a significant longer-term opportunity in additional indications. The Polynovo share price ended last week at $1.32.
