It was a busy week for Australia's top brokers. This has led to a number of broker notes being released.
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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4DMedical Ltd (ASX: 4DX)
According to a note out of Bell Potter, its analysts have retained their speculative buy rating on this medical technology company's shares with an increased price target of $6.00. Bell Potter points out that 4DMedical will undertake a head to head study of its CT:VQ exam vs CT Pulmonary Angiogram (the current standard of care) in patients with suspected Pulmonary Embolism (PE). It notes that this is necessary to generate clinical data to support the broader adoption of the 4DX CT:VQ exam for patients not subject to nuclear medicine for the ventilation/perfusion component of the exam. Bell Potter believes this is a good move, especially given the total addressable market is estimated to be $2.5 billion annually. If everything goes to plan, Bell Potter believes exponential adoption could occur from FY 2028 onwards. The 4DMedical share price ended the week at $3.97.
Megaport Ltd (ASX: MP1)
A note out of UBS reveals that its analysts have retained their buy rating on this network solutions company's shares with an increased price target of $24.20. UBS was pleased to see that Megaport's acquisition of Latitude.sh is bearing fruit. It notes that Latitude.sh has materially strengthened the company's earnings outlook. In fact, it highlights that contracts secured since the November acquisition have annual recurring revenue that is six times larger than the acquired business. And with accelerating AI and cloud demand, cross-selling opportunities, and balance sheet capacity, UBS believes it is well-positioned to win further contracts. The broker also believes there is upside potential if AI adoption continues to drive demand. The Megaport share price was fetching $18.48 at Friday's close.
Newmont Corporation (ASX: NEM)
Another note out of UBS reveals that its analysts have retained their buy rating and $195.00 price target on this gold giant's shares. The broker has been looking at the gold sector and the impact that higher costs (due to inflationary pressures) could have on miners. It notes that this is coming at a time when the spot gold price has pulled back meaningfully from its highs and below consensus expectations. While this is bad news for many gold miners, UBS highlights that Newmont has exposure to copper, which it believes will soften the blow. As a result, it remains positive and has named the company as one of its preferred gold exposures right now. The Newmont share price ended the week at $148.76.
