Brokers rate these 3 top ASX shares as buys in December

Brokers are always looking for buy ideas; the ever-changing share prices (and updates) give investors the opportunities to buy appealing ASX shares that are undervalued.

When a broker thinks a stock is a buy, that’s an interesting signal. When numerous analysts are excited about an ASX share, it could indicate an appealing investment opportunity.

We’re going to look at three of the most buy-rated businesses on the ASX right now.

Orica Ltd (ASX: ORI)

According to CommSec’s collation of analyst opinions, there are currently 14 buy ratings on the business.

Broker UBS describes Orica as the world’s largest supplier of commercial explosives and blasting systems, servicing both the mining and infrastructure sectors. Its customers are from numerous markets, including Australia, Asia, the Pacific, North America, Latin America, Europe, the Middle East, and Africa.

UBS is one of the brokers that rates Orica as a buy, with a price target of $27. That suggests a possible rise of 11% over the next year from where it is at the time of writing.

The broker noted that the ASX share’s recent FY25 result saw operating profit (EBIT) growth across all segments, reflecting improvements in the mix of products and the margin.

Pleasingly, FY26 guidance suggests EBIT growth across all segments. UBS wrote:

Orica is positively leveraged to resilient global mine production activity, and supportive AN prices given relatively balanced global supply. We expect mix and margin improvements from the uptake of premium blasting solutions and technology services, and the integration of recent acquisitions, to drive a 3yr EPS CAGR of +8% (FY25-28E). We see ongoing P/E re-rate potential…

Coles Group Ltd (ASX: COL)

According to CommSec’s collation of analyst opinions, there are currently 10 buy ratings on one of Australia’s largest supermarket businesses and a large player in the liquor space.

UBS is one of the brokers that rates Coles shares as a buy, with a price target of $25. That implies a possible rise of more than 12% within the next year.

The broker likes the business following the company’s FY26 first-quarter update. Coles’ total sales grew 3.9% to $10.96 billion, which is more than what UBS was expecting.

UBS highlighted in a note how Coles is outperforming rival Woolworths Group Ltd (ASX: WOW), along with the benefit of automated distribution centres (ADCs) and customer fulfillment centres (CFCs):

We remain confident superior execution continues as COL leverages recent investments (eg, Witron ADCs – improved availability in NSW & QLD; Ocado CFCs – drove 28% 1Q26 online growth [WOW +13%], with all missions performing well), plus ongoing promotional effectiveness (fewer, better) & sound ranging (increasingly store-led), with these both supply chain enabled.

UBS forecasts $1.25 billion of net profit in FY26 for Coles.

QBE Insurance Group Ltd (ASX: QBE)

According to CommSec’s collation of analyst opinions, there are currently nine buy ratings on the business.

QBE is an insurance business with a presence in North America, Australia and the Pacific, and international.

UBS has a buy rating on the ASX share, with a price target of $24.15. That implies a possible rise of 26% over the next year, at the time of writing.

The broker noted that the 2025 third-quarter update showed FY25’s earnings and the outlook for FY26 “continue to track in-line with expectations” despite a softening in the premium rate cycle.

UBS noted:            

With FY26E COR [combined operating ratio] guidance of ~92.5%… supporting a ~16% ROE outlook, mid-single digit volume growth ambitions retained, investment yields stabilising and A$450m buyback announced (~1.5% shares), its FY26E earnings outlook remains well underpinned. At a 10x FY26E PE (0.54x ASX200, 18% disc to 5yr avg) we continue to see compelling value and retain a Buy rating.

The post Brokers rate these 3 top ASX shares as buys in December appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.