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 Ord Minnett, its analysts have retained their speculative buy rating and $12.72 price target on this defence technology company's shares. The broker notes that EOS was the subject of a short seller attack from Grizzly Reports. It was pleased with management's response to the report and appreciates the improved clarity on existing contracts. Overall, Ord Minnett remains positive on the investment opportunity here and highlights that EOS stands to benefit from geopolitical tensions and rising defence spending. It also points out that the company has a substantial unconditional order book. The EOS share price ended the week at $5.86.
PLS Group Ltd (ASX: PLS)
A note out of Macquarie reveals that its analysts have upgraded this lithium miner's shares to an outperform rating with an improved price target of $5.00. The broker made the move after making a significant upgrade to its lithium price forecasts for 2026. Macquarie is now materially more positive on spodumene and is expecting a price of US$1,800 per tonne this year. This is notably higher than PLS' unit operating costs per tonne, which will be a big boost to profitability. As a result, it has lifted its earnings per share estimates and valuation accordingly and sees plenty of value on offer here for investors. The PLS share price was fetching $4.23 at Friday's close.
Pro Medicus Ltd (ASX: PME)
Analysts at Bell Potter have retained their buy rating on this health imaging technology company's shares with a reduced price target of $240.00. This follows the release of Pro Medicus' half-year results, which it concedes were a touch short of expectations. Bell Potter notes that although it delivered a record result with strong revenue and profit growth, its revenue was still a 5% miss. Outside this, the broker highlights that management believe AI will disrupt its business. Bell Potter agrees with this view and believes that Pro Medicus is well-placed to benefit from increasing demand for radiology services. This is especially the case given how its systems remain a driver of efficiency in radiology. Overall, the broker thinks that following recent weakness among software stocks, an attractive entry point has opened up for investors. The Pro Medicus share price ended the week at $118.22.
