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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A2 Milk Company Ltd (ASX: A2M)
According to a note out of Morgan Stanley, its analysts have retained its overweight rating and $10.00 price target on this infant formula company's shares. This follows the release of a trading update, which revealed that management now expects low double digit revenue growth in FY 2026 and modest earnings growth. This has been driven by a better than expected performance across all sides of the business. Overall, the broker was pleased with the update and continues to see value in its shares at current levels. The A2 Milk share price is trading at $9.37 on Friday afternoon.
Collins Foods Ltd (ASX: CKF)
A note out of Citi reveals that its analysts have retained their buy rating and $13.07 price target on this KFC restaurant operator's shares. The broker highlights that there have been strong updates from poultry producer Inghams Group Ltd (ASX: ING) and casual dining chain operator AmRest recently, which it feels bodes well for Collins Foods ahead of its half year earnings release next month. With respect to Inghams, it reported strong growth in quick service restaurant volumes early in FY 2026. And given that Collins Foods is one of its key customers, this is being seen as a positive indicator. And with average chicken prices up relatively modestly over the prior corresponding period, Citi feels this is manageable for the KFC operator. The Collins Foods share price is fetching $10.99 at the time of writing.
James Hardie Industries PLC (ASX: JHX)
Analysts at Morgans have upgraded this building materials company's shares to a buy rating with a $35.50 price target. According to the note, Morgans was pleased with James Hardie's performance during the second quarter. However, it was its outlook commentary that excited the broker the most. It notes that its outlook was incrementally more positive than previously anticipated. Morgans suspects that we could be seeing the bottoming in the cycle as demand stabilises. So, with its shares trading at approximately 17x estimated FY 2026 earnings, the broker thinks its valuation is undemanding. The James Hardie share price is trading at $27.62 this afternoon.
