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:
BHP Group Ltd (ASX: BHP)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $56.50 price target on this mining giant's shares. Morgan Stanley notes that the Big Australian performed positively during the second quarter. This was especially the case with its iron ore operations, which outperformed expectations. Another positive was BHP's copper operations delivering production ahead of forecasts. This was largely thanks to the key Escondida mine in Chile. In light of this update, the team at Morgan Stanley has seen nothing to change its positive view on the stock. The BHP share price ended the week trading at $48.43.
National Australia Bank Ltd (ASX: NAB)
A note out of UBS reveals that its analysts have upgraded this banking giant's shares to a buy rating with an increased price target of $47.00. The broker highlights that NAB has been successful in defending its leadership position in business banking. As a result of this, UBS believes the bank is well-positioned to benefit from structural business lending growth. In addition, it notes that with NAB shares underperforming the rest of the big four in 2025, it sees more opportunity for a re-rating this year than it does for the other banks. The NAB share price was fetching $42.35 at the closing bell on Friday.
Zip Co Ltd (ASX: ZIP)
Another note out of UBS reveals that its analysts have retained their buy rating on this buy now pay later provider's shares with a trimmed price target of $5.20. According to the note, UBS believes that significant share price weakness has created a buying opportunity for investors. It thinks this has been driven partly by an inquiry into the industry in the United States. However, there has been some good news with President Trump calling for 10% caps on credit card interest rates. It feels that this could mean tighter conditions for credit card lending, which could push consumers to buy now pay later services. Though, there is still uncertainty with respect to how Zip's fees will interpreted by law makers. The Zip share price ended the week at $3.04.
