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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Eagers Automotive Ltd (ASX: APE)
According to a note out of Bell Potter, its analysts have retained their buy rating on this automotive retailer's shares with a trimmed price target of $13.00. The broker notes that Eagers Automotive delivered a first half profit that was ahead of forecasts and guidance. And while the broker concedes that there may be a lack of short term catalysts for the stock, it believes a stronger second half result will restore some confidence in the outlook and help drive its shares higher. Bell Potter also highlights that its CEO suggested that the current half could represent the trough in market conditions. The Eagers Automotive share price is trading at $10.15 at the time of writing.
Megaport Ltd (ASX: MP1)
A note out of Morgans reveals that its analysts have upgraded this network as a service provider's shares to an add rating with a reduced price target of $12.50. This follows the release of its FY 2024 results on Thursday. Morgans notes that while its results were in line with expectations, its guidance for FY 2025 was far softer than expected. However, the broker believes that this guidance is conservative given the trends that its reported during the fourth quarter. So, with its shares crashing deep into the red and expectations lowered, the broker believes new investors will be rewarded if an acceleration in sales occurs. As a result, the broker views the risk/reward trade-off as looking better and has upgraded its shares. The Megaport share price is fetching $9.07 this afternoon.
Santos Ltd (ASX: STO)
Analysts at Goldman Sachs have retained their buy rating on this energy producer's shares with a trimmed price target of $8.65. According to the note, the broker was pleased with the company's half year results. It notes that Santos reported US$1.81 billion EBITDA, which was 3% below its estimates on higher costs, but net profit after tax of US$0.65 billion, which was 6% above its estimates on lower D&A and finance costs. In light of this, the broker continues to believe that its shares are undervalued at 0.85x net asset value. Especially given its strong production growth outlook. The Santos share price is trading at $7.41 on Friday.
