Brokers name 3 ASX shares to buy now

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:

Accent Group Ltd (ASX: AX1)

According to a note out of Goldman Sachs, its analysts have retained their buy rating on this footwear focused retailer’s shares with an improved price target of $3.10. The broker believes that the market is underestimating the company’s full earnings potential. It highlights that this comprises an attractive distribution business, a set of vertically owned brands, and a portfolio of strong retail banners. Importantly, it continues to believe Accent is well protected from a potential slowdown in discretionary spend given its exposure to a younger consumer and performance footwear. The Accent share price is trading at $2.34 this afternoon.

Allkem Ltd (ASX: AKE)

A note out of Morgans reveals that its analysts have retained their add rating on this lithium miner’s shares with a slightly trimmed price target of $15.10. The broker believes that Allkem could be an attractive takeover target in the lithium industry. This is due to its cheap valuation and significant lithium resource. The Allkem share price is fetching $11.96 today.

Pilbara Minerals Ltd (ASX: PLS)

Analysts at Citi have retained their buy rating on this lithium miner’s shares with a modestly reduced price target of $4.60. This follows news that the company’s board has approved the expansion of its spodumene production to 1 million tonnes per annum. And while the costs are more than it was expecting, it isn’t overly surprised in the current inflationary environment. The Pilbara Minerals share price is trading at $3.98 this afternoon.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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More reading

• ‘Sky-high demand’: 2 ASX 200 mining shares that could head to the moon
• 7 ASX dividend shares you can buy for under $10
• 5 things to watch on the ASX 200 on Friday
• Attention lithium investors: This ASX 200 mining billionaire says Australia could become a battery chemical manufacturing powerhouse
• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor James Mickleboro has positions in Allkem. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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