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:
James Hardie Industries PLC (ASX: JHX)
According to a note out of Macquarie, its analysts have retained their outperform rating and $37.20 price target on this building products company's shares. The broker continues to rate James Hardie as a preferred pick for US building materials exposure. And while it concedes that the sector is struggling at present and could be held back by weak consumer sentiment and affordability challenges, Macquarie remains positive. It points out that its shares have corrected materially and its earnings base is well below mid-cycle. In addition, the broker thinks that monetary policy support could prove a key catalyst. The James Hardie share price was trading at $28.86 on Friday.
Paladin Energy Ltd (ASX: PDN)
A note out of Citi reveals that its analysts have retained their buy rating on this uranium producer's shares with a reduced price target of $9.00. This follows the completion of its $300 million capital raising at an 8% discount of $7.25 per new share. Proceeds from the capital raising will primarily be used to advance the development of the Patterson Lake South towards a final investment decision. Although Citi has trimmed its earnings estimates and valuation to reflect the dilution from the capital raising, it remains very positive on Paladin Energy. This is especially the case given how the Langer Heinrich operation is performing ahead of expectations so far this quarter. The Paladin Energy share price was fetching $8.10 at Friday's close.
Zip Co Ltd (ASX: ZIP)
Analysts at UBS have retained their buy rating on this buy now pay later (BNPL) provider's shares with an improved price target of $5.25. According to the note, the broker is feeling even more bullish on Zip's outlook after reviewing recent app store download data in the United States. It highlights that the data indicates that downloads increased strongly in July and August in the lucrative market, which could be good news for its performance in FY 2026. UBS believes this indicates that its strong momentum is continuing. As a result, it has boosted its earnings estimates for the medium term and its valuation to reflect this. The Zip share price ended the week at $4.66.
