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:
Flight Centre Travel Group Ltd (ASX: FLT)
According to a note out of Macquarie, its analysts have retained their outperform rating on this travel agent's shares with an increased price target of $17.85. This follows news that Flight Centre has signed an agreement to acquire the UK's leading online cruise agency, Iglu, for 100 million British pounds. Macquarie was pleased with the deal and highlights that Iglu has a 15% of the UK market and upwards of 75% of online bookings. The broker sees the cruise industry as attractive and believes there are further acquisition opportunities for Flight Centre in the future. Outside this, Macquarie is feeling positive on Flight Centre due to its belief that it will achieve its guidance in FY 2026, which is being supported by improving consumer trends. The Flight Centre share price ended the week trading at $15.41.
Lovisa Holdings Ltd (ASX: LOV)
A note out of Morgan Stanley reveals that its analysts have upgraded this fashion jewellery retailer's shares to an overweight rating with a trimmed price target of $38.00. The broker believes that recent volatility in Lovisa's growth is transitory rather than structural. In fact, the broker remains very positive on its outlook and sees earnings per share rising 83% by FY 2028. This is expected to be supported by its agility on product range and best-in-class supply chain execution. As a result, Morgan Stanley believes the recent de-rating of Lovisa's shares is an opportunity for investors to build a position in a competitively advantaged Australian retailer. The Lovisa share price was fetching $30.50 at Friday's close.
Zip Co Ltd (ASX: ZIP)
Analysts at Macquarie have also retained their outperform rating and $4.85 price target on this buy now pay later provider's shares. According to the note, the broker believes that Zip will deliver on its net transaction margin guidance in FY 2026. This is despite elevating loss rates caused by its accelerating total transaction value (TTV) growth. Outside this, the broker is forecasting Zip to continue to deliver rapid growth, supported by increased product adoption, expansion of merchant network, increased customer engagement, and digital product innovation. The Zip share price ended the week at $3.11.
