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 retained their buy rating and $5.30 price target on this counter drone technology company's shares. This followed the announcement of a $25.3 million contract win from a defence end customer in a Latin American country. In light of this latest contract win, Bell Potter notes that DroneShield has now secured an estimated 97% of its revenue expectations for FY 2025. Looking ahead, its analysts are expecting 2026 to be an inflection point for the global counter-drone industry. They highlight that a number of countries are poised to unleash a wave of spending on soft-kill detect and defeat solutions. As a result, Bell Potter believes DroneShield could see material contracts flowing from its $2.55 billion sales pipeline over the next 3-6 months as defence budgets roll over to FY 2026. The DroneShield share price ended the week at $3.22.
Endeavour Group Ltd (ASX: EDV)
Another note out of Bell Potter reveals that its analysts have upgraded this drinks giant's shares to a buy rating with a trimmed price target of $4.30. This followed the release of trading update from the Dan Murphy's and BWS owner which revealed improving trends during the back end of the first quarter and the start of the second quarter. Looking ahead, Bell Potter believes that recent interest rate cuts and a softer comparable period means that its second quarter performance will be strong. It then expects positive momentum to build heading into the April/May strategy refresh. And with expectations in the broker community currently subdued, Bell Potter sees potential for a positive surprise in FY 2026. As a result, it feels that now could be a good opportunity to pick up the shares of this beaten down ASX 200 blue chip. The Endeavour share price was fetching $3.64 at Friday's close.
Light & Wonder Inc. (ASX: LNW)
Analysts at Macquarie have retained their outperform on this gaming technology company's shares with a trimmed price target of $170.00. According to the note, its analysts were pleased with the company's performance in the third quarter of FY 2025. They point out that Light & Wonder's adjusted EBITDA of US$375 million came in comfortably ahead of their US$360 million estimate. This was driven by its revenue mix and cost management, which supported margin expansion across the business. And while Macquarie acknowledges that in the near-term its ASX primary listing plans and litigation could weigh on investor sentiment, it believes there is scope for a re-rating once these issues clear in the next 6-12 months. As a result, Macquarie is urging investors to take advantage of recent share price weakness. The Light & Wonder share price ended the week at $124.85.
