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:
Develop Global Ltd (ASX: DVP)
According to a note out of Bell Potter, its analysts have retained their buy rating on this copper and zinc miner's shares with an improved price target of $5.40. This follows the release of an update on the definitive feasibility study for the Sulphur Springs Zinc-Copper mining project. Bell Potter highlights that the project has a net present value greater than it was expecting with lower than forecast initial capex. Outside this, the broker highlights that Develop Global provides investors with direct leverage to critical and strategic minerals including copper and zinc. And with prices exhibiting strong growth in recent months, this bodes well for the company's near-term earnings and free cash flow outlook. The Develop Global share price is trading at $4.57 this afternoon.
Guzman Y Gomez Ltd (ASX: GYG)
A note out of Morgans reveals that its analysts have retained their buy rating on this quick service restaurant operator with an improved price target of $32.60. This follows the release of the burrito seller's first quarter update this week. Morgans notes that the quarter played out largely as expected with comparable sales growth improving slightly through the quarter as it cycled through a period of elevated demand in the prior corresponding period. The broker believes that the first quarter will likely be the low point for comparable sales growth this year and that it is onwards and upwards from here. In light of this, the broker feels that its margin guidance for FY 2026 is likely to prove conservative. The Guzman Y Gomez share price is fetching $25.91 at the time of writing.
Syrah Resources Ltd (ASX: SYR)
Analysts at Macquarie have upgraded this graphite producer's shares to an outperform rating with a vastly improved price target of 70 cents. According to the note, the broker believes that new export controls on lithium battery components and graphite anode materials are a major positive for Syrah. Especially given its unique position operating one of the world's largest natural graphite projects. Overall, the broker sees this as a re-rating event that is comparable to what has been seen in the booming rare earths industry this year. As a result, it has doubled the EV/EBITDA multiple that it thinks its shares deserve to trade on to 10x from 5x, resulting in a huge valuation increase. The Syrah share price is trading at 43 cents on Friday afternoon.
