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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Coles Group Ltd (ASX: COL)
According to a note out of Bell Potter, its analysts have retained their buy rating on this supermarket giant's shares with a trimmed price target of $20.50. This follows the release of a first quarter update that was modestly below the broker's forecasts. Nevertheless, Bell Potter was pleased to see that Coles outperformed the supermarket industry during the period. This implies market share gains over the three months. Outside this, the broker continues to see Coles as providing an attractive earnings growth profile through to FY 2027 on an underlying basis. This will be driven by $1 billion in cumulative savings through Simplify & Save, the sustained benefit of lower loss rates, store expansion, and its investment in distribution centres. The Coles share price is trading at $17.47 on Friday.
IDP Education Ltd (ASX: IEL)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this language testing and student placement company's shares with a slightly lowered price target of $19.00. This follows news that the company is planning to enter the Chinese English language testing (IELTS) market directly. Goldman is broadly positive on the move, noting its attractive market characteristics and potential earnings upside over time. However, it concedes that the timing and execution remain unclear. But if everything goes to plan, Goldman believes direct testing in China could help IDP Education's IELTS volumes resume sequential growth from the second half of next year. This could be an important catalyst to watch given this metric's importance to investor sentiment. The IDP Education share price is fetching $13.95 today.
Origin Energy Ltd (ASX: ORG)
Analysts at Citi have retained their buy rating and $11.00 price target on this energy giant's shares. According to the note, the broker was pleased with Origin Energy's performance in the first quarter, noting that its update was broadly in line with its expectations. And although LNG sales were ahead of Citi's forecasts, it notes that this was due to the timing of shipments. All in all, the broker continues to see value in the company's shares and reaffirms its buy rating. The Origin Energy share price is trading at $9.62 at the time of writing.
