Brokers name 3 ASX shares to buy today

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:

Electro Optic Systems Holdings Ltd (ASX: EOS)

According to a note out of Bell Potter, its analysts have retained their buy rating on the defence and space company’s shares with a trimmed price target of $8.10. This follows news that the company has acquired MARSS Group’s drone interceptor business for $10 million. It notes that interceptor drones are an emerging hard-kill counter-unmanned aerial systems (C-UAS) technology that is expected to grow in demand in the coming years. And while it will take 12-24 months to develop a commercial product, Bell Potter thinks it will be worth the wait. It estimates that interceptor revenue will come in at $6 million in 2027 then grow in the double digits in the years that follow. Outside this, it highlights that EOS is positioned as a market leader in C-UAS solutions and is leveraged to increasing budget allocations to C-UAS technologies. The EOS share price is trading at $4.56 this afternoon.

Nick Scali Limited (ASX: NCK)

Another note out of Bell Potter reveals that its analysts have initiated coverage on this furniture retailer’s shares with a buy rating and $27.00 price target. The broker is feeling positive about Nick Scali’s outlook thanks to its industry leading margins and its expansion opportunity in the UK. Bell Potter highlights that there is scope for the company to triple its store footprint in the UK market, which will be supportive of earnings and dividend growth in the coming years. This is expected to be complemented by growth in the Plush brand in Australia over time. Overall, the broker feels that it is the most attractive goods retailer within the ASX 200 on a growth adjusted basis. The Nick Scali share price is fetching $23.71 at the time of writing.

Web Travel Group Ltd (ASX: WEB)

Analysts at UBS have retained their buy rating and $6.15 price target on this travel technology company’s shares. According to the note, the broker was pleased to see that the WebBeds owner’s growth is considerably stronger than its rival Hotelbeds. In addition, its margins have held up a lot better than its competitor. And while there are risks that its rival could cut prices to boost its growth, UBS isn’t overly concerned and continues to recommend Web Travel to its clients. The Web Travel share price is trading at $4.72 on Friday.

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

More reading

• Why HMC Capital, Select Harvests, Web Travel, and WiseTech shares are pushing higher today
• Buy alert! Bell Potter says this ASX 200 stock is ‘unmatched’
• Forget Droneshield shares, I’d buy this ASX defence stock instead
• 5 things to watch on the ASX 200 on Friday
• Why EOS shares could rise 75% in just a year

Motley Fool contributor James Mickleboro has positions in Web Travel Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. The Motley Fool Australia has recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.