Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

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Key points
  • Electro Optic Systems’ recent acquisition of MARSS Group hints at promising growth in the drone interceptor market, likely enhancing its leadership in defence tech innovations.
  • Despite slower growth, Lovisa is impressively maintaining over 20% sales increases, offering an attractive entry point for investors amidst strong global expansion prospects.
  • With WiseTech Global reaffirming its fiscal guidance and gearing up for exciting announcements, the company shows strong strides in enhancing its logistics solutions.

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:

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Electro Optic Systems Holdings Ltd (ASX: EOS)

According to a note out of Bell Potter, its analysts retained their buy rating on this defence company's shares with a reduced price target of $8.10. This followed the completion of the acquisition of the MARSS Group's drone interceptor business for $10 million last week. Bell Potter notes that interceptor drones are an emerging hard-kill counter-unmanned aerial systems (C-UAS) technology that is expected to grow in demand in the coming years. Although it will be 12 to 24 months until EOS has developed a commercial product, Bell Potter thinks it will be worth the wait. It is estimating that interceptor revenue will come in at $6 million in 2027 then consistently grow in the double digits in the years that follow. In addition, it once again highlights that EOS is positioned as a market leader in C-UAS solutions and is leveraged to increasing budget allocations to C-UAS technologies. The EOS share price ended the week at $4.55.

Lovisa Holdings Ltd (ASX: LOV)

A note out of Morgans revealed that its analysts upgraded this fashion jewellery retailer's shares to a buy rating with a trimmed price target of $40.00. This followed the release of a trading update from Lovisa for the first 20 weeks of FY 2026. Morgans notes that the company's sales and store growth have slowed over the past three months. However, given that Lovisa is still growing sales at 20%+, which is impressive given the challenging retail trading conditions, it remains very positive. Especially with the recent pullback in its share price, which Morgans thinks has created an opportunity to buy a high quality retailer with a global store rollout strategy. It also highlights that its shares are trading back around their average 10-year forward earnings multiple despite offering ~20% earnings per share compound annual growth over the next 3 years. The Lovisa share price was fetching $32.13 at Friday's close.

WiseTech Global Ltd (ASX: WTC)

Another note out of Bell Potter revealed that its analysts retained their buy rating on this logistics solutions software provider's shares with a trimmed price target of $100.00. The broker was pleased to see management reiterate its FY 2026 guidance at its annual general meeting this month. It believes this was the first hurdle cleared by management and is now looking forward to its investor day event next week. Bell Potter is expecting an update on its new commercial model and the launch of its Container Transport Optimisation (CTO) offering. The WiseTech Global share price ended the week at $73.02.

Motley Fool contributor James Mickleboro has positions in Lovisa and WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems, Lovisa, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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