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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Evolution Mining Ltd (ASX: EVN)
According to a note out of Bell Potter, its analysts have retained their buy rating on this gold miner's shares with an improved price target of $12.35. Evolution Mining reported a softer quarter than expected, with both gold and copper production falling short of Bell Potter's estimates. In addition, its costs were higher than forecast for the three months. However, this has been overlooked and its earnings estimates for the gold miner have been increased to reflect higher gold and copper price assumptions. Outside this, Bell Potter likes Evolution Mining due to its unhedged gold and copper exposure through a portfolio of high quality, long-life assets in tier one jurisdictions and overseen by a high-quality management team. It also highlights that the company has stated its intention to pass growing free cash flows on to shareholders. The Evolution Mining share price is trading at $11.62 this afternoon.
Jumbo Interactive Ltd (ASX: JIN)
A note out of Morgans reveals that its analysts have upgraded this online lottery ticket seller's shares to a buy rating with an increased price target of $15.90. Morgans was pleased to see Jumbo take its first step into the international business to consumer (B2C) prize draw space through the acquisition of UK-based Dream Car Giveaways (DCG). It is a leading digital competition platform. The broker highlights that the acquisition bridges a potential earnings gap and accelerates Jumbo's strategic shift from slower-growing international B2B operations toward higher-margin B2C opportunities. The acquisition also provides Jumbo with immediate scale and profitability in a large, underpenetrated UK prize market. The Jumbo share price is fetching $12.55 at the time of writing.
Santos Ltd (ASX: STO)
Analysts at Macquarie have retained their outperform rating on this energy producer's shares with a trimmed price target of $8.15. This follows the release of a quarterly update which revealed slightly weaker production. Macquarie remains positive despite the soft quarter and continues to rate Santos as its preferred exposure in large cap energy. The broker highlights that Santos shares are heavily discounted and catalyst rich. These catalysts include the Barossa and Pikka projects moving instream in the next 3-6 months. The Santos share price is trading at $6.28 on Friday afternoon.
