Why I think these buy-rated ASX shares could be top picks

When expert views align with improving data and execution, it's worth paying attention. These three buy calls feel grounded.

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I don't take broker recommendations at face value, but I do pay attention when expert views line up with improving fundamentals and sensible execution. In those cases, broker commentary can help validate whether momentum is real or just sentiment-driven.

These are three ASX shares where recent expert views make sense to me, and where I can see why analysts are comfortable recommending a buy.

Guzman Y Gomez Ltd (ASX: GYG)

Guzman Y Gomez is still relatively new to the ASX, but it's already showing signs of the operational discipline I like to see in growing consumer brands.

Morgans recently reiterated its buy recommendation with a $32.30 target price, pointing to the launch of the BBQ Chicken Double Crunch as a positive development. The broker said early feedback suggests the product is "one of GYG's more indulgent menu items" and that taste tests have been "overwhelmingly positive".

What stands out to me is Morgans' point that the product "leverages existing ingredients, meaning no incremental complexity or cost for stores". That's exactly the kind of innovation I like. Driving same-store sales without adding operational friction is a powerful lever, especially in a scaled restaurant business.

Morgans also noted that management has "repeatedly emphasised that menu innovation is a key lever for same-store sales growth", and I agree this launch reinforces that message.

NextDC Ltd (ASX: NXT)

NextDC continues to benefit from strong demand for data centre capacity, and recent updates help explain why brokers remain constructive.

Ord Minnett has a buy recommendation and a $20.50 target price after noting that contracted utilisation has risen to 316 megawatts. That represents an increase of 71 megawatts, or 29%, since 30 June. It has since increased further as per this update.

What I find compelling is Ord Minnett's observation that NextDC had only guided to 50 to 100 megawatts of contract wins for FY26. Against that backdrop, the latest update already looks like an early beat. The broker also highlighted "strong demand from both western and eastern hyperscalers", which supports the broader industry tailwinds.

Ord Minnett said the announcement "bodes well for the full-year outcome" and lifted its target price to reflect this and the assumed value of an agreement with OpenAI, while sensibly leaving earnings estimates unchanged due to limited detail. That balance between optimism and caution feels reasonable to me.

Hub24 Ltd (ASX: HUB)

Hub24 is a familiar name and Bell Potter's latest commentary reinforces why it continues to attract buy recommendations.

The broker described the second-quarter update as "solid", noting that Hub24 delivered the highest quarterly inflow on record. Net inflows of $5.6 billion exceeded consensus expectations, supported by strong gross inflows and low outflows.

Bell Potter's channel checks indicate Hub24 "continues to rank first for future flow intentions", which I think is an important point. It suggests momentum is not just backward-looking, but supported by adviser demand going forward.

The broker also highlighted that flow growth excluding transitions is accelerating and that the business is tracking toward its custodial funds under administration targets. While the shares are trading on around 32 times FY27 EBITDA, Bell Potter views this as "around medium-term averages" given visibility and strategic progress and has a buy recommendation and $125.00 target price. I tend to agree with that assessment.

Foolish takeaway

In all three cases, the expert optimism feels grounded rather than speculative. Whether it's margin-friendly menu innovation at Guzman Y Gomez, accelerating contract wins at NextDC, or sustained platform momentum at Hub24, the common thread is execution.

I don't think expert views should ever replace independent thinking. But when they align with improving data points and a clear strategy, I think they're well worth listening to.

Motley Fool contributor Grace Alvino has positions in Guzman Y Gomez and Hub24. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. 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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