It has been another busy week for many of 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 right now:
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Baby Bunting Group Ltd (ASX: BBN)
According to a note out of Morgans, its analysts have retained their add rating on this baby products retailer's shares with an improved price target of $1.80. This follows the release of a trading update this week which saw the company reaffirm its profit guidance for FY 2024. However, the big positive was the improvement in the company's sales performance since the end of April. It feels this bodes well for Baby Bunting in FY 2025. So much so, it is forecasting a huge rebound its profits. In addition, Morgans notes that its medium term growth will be supported by new exclusive supply agreements. The Baby Bunting share price is trading at $1.57 on Friday afternoon.
Universal Store Holdings Ltd (ASX: UNI)
A note out of UBS reveals that its analysts have upgraded this youth fashion retailer's shares to a buy rating with a $6.00 price target. The broker made the move largely on valuation grounds following a recent pullback in the company's share price. Outside this, it likes Universal Store due to its exposure to the resilient youth consumer and its successful marketing execution. And while its store rollout may be slower than originally hoped, it appears to see positives in this approach. UBS also highlights its strong balance sheet and positive medium term growth outlook as reasons to buy its shares. The Universal Store share price is fetching $4.96 at the time of writing.
Woolworths Group Ltd (ASX: WOW)
Analysts at Goldman Sachs have reiterated their buy rating on this supermarket giant's shares with an improved price target of $40.20. The broker believes that concerns over margin weakness and regulatory reviews is overdone and created a buying opportunity for investors. In respect to margins, Goldman's analysis and channel checks suggest resilient ~3% industry topline supermarket growth from improving volume. In addition, it sees ample levers for gross profit margin expansion through business model mix and margin optimisation opportunities. As a result, Goldman is forecasting an earnings per share compound annual growth rate of 8.2% between FY 2024 and FY 2027. The Woolworths share price is trading at $33.87 this afternoon.
