Brokers name 3 ASX shares to buy today

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 Goldman Sachs, its analysts have initiated coverage on this lithium miner’s shares with a buy rating and $15.20 price target. With the broker expecting lithium prices to fall materially in the coming years, it feels investors should be very selective with where they invest. It likes Allkem due to its attractive valuation at 1x NAV and its plan to grow production 4x by FY 2027. The Allkem share price is trading at $13.02 on Friday.

Qantas Airways Limited (ASX: QAN)

Analysts at Morgans have initiated coverage on this airline operator’s shares with an add rating and $8.50 price target. Following Qantas’ latest update, the broker believes the discount being applied to its shares is unwarranted. Its analysts feel that solid value exists in Qantas’ shares given their expectation for further EBITDA growth over FY24/25 and pent-up travel demand underpinning a healthy demand environment for some time. The Qantas share price is fetching $6.21 this afternoon.

Rio Tinto Ltd (ASX: RIO)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating on this mining giant’s shares with an improved price target of $125.00. This follows an increase in spot commodity prices in recent weeks, which has led to an upgrade to its earnings estimates for the miner. The Rio Tinto share price is trading at $117.50 on Friday afternoon.

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

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More reading

• Why Beach, Chalice Mining, Nitro, and Rio Tinto shares are rising today
• Forecast for ASX 200 iron ore shares in 2023: bull vs bear
• Is this the beginning of a beautiful green hydrogen friendship between Fortescue and Rio Tinto?
• Why are ASX 200 lithium shares taking another beating on Friday?
• 5 things to watch on the ASX 200 on Friday

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 no position in any of the stocks mentioned. 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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