It was another busy week for Australia's top brokers, with a number of new research 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 could be worth buying:
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Megaport Ltd (ASX: MP1)
According to a note out of Bell Potter, its analysts have retained their buy rating on this cloud infrastructure company's shares with a slightly reduced price target of $26.00. While the broker has lowered its valuation to reflect weaker share prices across the sector, it has actually increased its earnings forecasts. Bell Potter believes it previously underestimated the contribution from Megaport's expanding AI infrastructure business, particularly the computing power it is supplying to customers. It now expects underlying EBITDA of approximately $770 million in FY 2028, up from its previous forecast of $726 million. The broker also highlights Megaport's strong growth prospects, fully funded expansion plans, and attractive valuation. It estimates that the shares are trading at just six times forecast FY 2028 EBITDA. The Megaport share price ended the week at $16.50.
Paladin Energy Ltd (ASX: PDN)
A note out of Morgans reveals that its analysts have upgraded this uranium producer's shares to a buy rating with a slightly reduced price target of $13.10. This follows Paladin's first-quarter update, which revealed uranium production of 1 million pounds at its Langer Heinrich mine. While this was below market expectations, Morgans notes that a slow start to FY 2027 was anticipated due to a planned plant shutdown and lower recovery rates. Importantly, mining performance improved during the quarter, while the average selling price of uranium increased 12% to a record US$79.40 per pound. With Paladin shares falling recently, Morgans believes the risk-reward balance has become more favourable for investors. The Paladin Energy share price was fetching $7.32 at Friday's close.
PLS Group Ltd (ASX: PLS)
Another note out of Bell Potter reveals that its analysts have upgraded this lithium producer's shares to a buy rating with a trimmed price target of $4.40. According to the note, the broker has lowered its near-term lithium price forecasts due to weaker market conditions and concerns about a potential supply surplus in 2027. However, Bell Potter still sees plenty of reasons to be positive about PLS Group's outlook. It believes the company can generate substantial earnings and cash flow at current lithium prices, particularly with the restart of its Ngungaju processing plant. The broker also highlights potential production growth from future developments, supported by long-term demand for electric vehicles and battery energy storage systems. With the recent decline in its share price, Bell Potter believes investors are being offered an opportunity to gain exposure to this growth at an attractive price. The PLS Group share price ended the week at $2.98.
