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:

Allkem Ltd (ASX: AKE)

According to a note out of Bell Potter, its analysts have retained their buy rating on this lithium miner’s shares with an improved price target of $19.89. This follows the release of the company’s third-quarter update. And while the broker notes that Allkem expects lithium prices to weaken in the fourth quarter, this is in line with its own expectations. In light of this, the broker remains positive and rates the company highly due to its portfolio of growth projects and strong balance sheet. The Allkem share price is trading at $11.61 on Friday.

Challenger Ltd (ASX: CGF)

A note out of Morgans reveals that its analysts have upgraded this annuities company’s shares to an add rating with a trimmed price target of $7.52. While the broker felt that Challenger’s quarterly update was soft, it remains positive on the future and believes that recent share price weakness has created a buying opportunity for investors. Particularly given how the roll-through of recent strong interest rates rises provides a supportive backdrop for earnings over the next few years. The Challenger share price is fetching $6.19 today.

Westpac Banking Corp (ASX: WBC)

Analysts at Goldman Sachs have retained their conviction buy rating on this banking giant’s shares with a trimmed price target of $25.86. While the broker acknowledges that net interest margin (NIM) pressures are accelerating across the sector, it feels Westpac’s shorter-duration portfolio will see it outperform peers. In addition, it likes the bank due to its cost reduction plans and attractive valuation compared to historic levels. The Westpac share price is trading at $22.34 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

• Should lithium investors buy the dip in the Allkem share price?
• Can Westpac shares really deliver 15% upside AND a 6% dividend yield?
• Why 29Metals, Allkem, Alliance, and Rio Tinto shares are falling today
• 3 ASX 200 shares making big moves following quarterly updates
• Allkem share price slides despite strong quarterly production from the ASX 200 lithium stock

Motley Fool contributor James Mickleboro has positions in Allkem and Westpac Banking. 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 Challenger and Westpac Banking. 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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