Looking for ASX shares to buy? Australia's leading brokers have been busy identifying opportunities across the market.
Three shares that have recently been given buy ratings are listed below. Here's why brokers are feeling bullish about them.
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Capstone Copper Corp (ASX: CSC)
According to a note out of Morgans, its analysts have retained their buy rating and $17.00 price target on this copper producer's shares. The broker was pleased with Capstone Copper's latest quarterly results, which revealed another record quarter for earnings before interest, tax, depreciation and amortisation (EBITDA). This was supported by higher copper prices and record low costs at its Mantoverde sulphide operation, which helped offset lower production elsewhere. Looking ahead, Morgans is particularly positive about the company's Mantoverde expansion, which is progressing ahead of expectations. The operation has recently achieved processing rates above its targeted capacity of 45,000 tonnes per day, providing confidence ahead of the December quarter. While maintenance issues at Pinto Valley remain a temporary setback, Morgans believes the outlook for Capstone Copper remains positive. The Capstone Copper share price is trading at $11.30 on Monday. Given the long-term outlook for copper and the potential upside on offer here, I think it could be worth considering for investors looking for exposure to the red metal.
Coles Group Ltd (ASX: COL)
A note out of Macquarie reveals that its analysts have retained their outperform rating on this supermarket giant's shares with a reduced price target of $24.00. This is despite Coles delivering a disappointing first-quarter update, which revealed weaker sales growth and higher operating costs. The company expects supermarket earnings before interest and tax (EBIT) of approximately $1.23 billion in the first half, which was below market expectations. In response, Macquarie has reduced its earnings forecasts, but believes management is taking the right approach by reinvesting in its supermarket operations to win back customers and improve its competitive position. The broker also highlights approximately $250 million in annual cost savings, which should provide some flexibility to absorb higher expenses and support competitive pricing. Although the near-term outlook is challenging, Macquarie sees value in Coles shares following their recent weakness. The Coles share price is fetching $21.25 at the time of writing. I would agree with Macquarie on this one. It wasn't a great update but there's still a lot to like with Coles, including its defensive qualities and strong market position.
NextDC Ltd (ASX: NXT)
Analysts at Citi have retained their buy rating and $12.75 price target on this data centre operator's shares. According to the note, the broker believes recent results from the world's largest cloud computing companies are encouraging for the data centre industry. Citi highlights accelerating revenue growth at major cloud providers, alongside substantial backlogs at Amazon Web Services and Alphabet, as evidence that demand for computing infrastructure remains strong. This is particularly encouraging for NextDC, which is investing heavily in expanding its Australian data centre network to support growing demand for artificial intelligence (AI) and traditional cloud computing. While Citi acknowledges that regulatory hurdles could delay some Australian data centre developments, it remains confident in the industry's underlying growth prospects. As a result, the broker continues to see significant upside for NextDC shares. The NextDC share price is trading at $5.81 on Monday afternoon. I think Citi is spot on and believe recent weakness in the company's share price has created a compelling buying opportunity for patient investors.
