It has been another busy week for Australia's top brokers. This has led to the release of a large 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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Eagers Automotive Ltd (ASX: APE)
According to a note out of Morgans, its analysts have retained their add rating and $16.70 price target on this auto retailer's shares. This follows news that it has signed an agreement to acquire a number of dealerships and associated properties for $205 million. Morgans expects the net earnings outcome to be ~3% accretion. It also notes that this portfolio optimisation provides Eagers Automative with immediate scale in the ACT, which will enable further geographic expansion of growth initiatives. The Eagers Automotive share price is trading at $13.89 on Friday.
Santos Ltd (ASX: STO)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $10.40 price target on this energy producer's shares. This follows the release of the company's climate change report this week. Morgan Stanley highlights that Santos is aiming to generate excess carbon credits from technologies to develop a carbon solutions business, creating new revenue streams and helping reduce customer emissions. The Santos share price is fetching $7.89 this afternoon.
Tabcorp Holdings Limited (ASX: TAH)
Analysts at Goldman Sachs have retained their buy rating and $6.20 price target on this gambling company's shares. This follows the release of Tabcorp's demerger update, which will see it spin off its lotteries business as a separately listed entity. Goldman is a fan of the plan and believes it could unlock significant shareholder value. The Tabcorp share price is trading at $5.51 on Friday afternoon.
