It was a busy week for Australia’s top brokers. This has led to a number of broker notes being released. 

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:

DigiCo Infrastructure REIT (ASX: DGT)

According to a note out of Bell Potter, its analysts have retained their buy rating on this data centre company’s shares with a trimmed price target of $3.35. The broker highlights that DigiCo announced its FY 2026 result last week with its underlying EBITDA of $126.6 million slightly above expectations. And while guidance for FY 2027 EBITDA came in below estimates, it believes a material capex spend and customer letters of intent points to earnings ramping up in FY 2028 as billing comes on line. It believes this should support a growing dividend. In addition, with its shares still trading at a deep discount to their net tangible assets, Bell Potter sees a lot of value in them. The DigiCo share price ended the week at $2.53.

Goodman Group (ASX: GMG)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $35.40 price target on this industrial property company’s shares. This follows the release of an FY 2026 result that revealed operating earnings marginally ahead of consensus estimates. Once again, while its guidance for FY 2027 was a touch short of expectations, the broker appears confident it can outperform this and is expecting a double-digit three-year earnings compound annual growth rate. So, with its shares trading at a discount to its long-run PE ratio, Macquarie thinks now could be the  time to buy. The Goodman share price was fetching $27.27 at Friday’s close.

Megaport Ltd (ASX: MP1)

Analysts at Morgans have upgraded this network services company’s shares to a buy rating with a $25.00 price target. According to the note, Megaport delivered both FY 2026 earnings and FY 2027 guidance that were above market expectations. This reflects record network and compute growth. And while there are minor balance sheet concerns, Morgans believes the company will end FY 2027 with surplus liquidity of nearly $600 million. Outside this, it highlights that deals already contracted suggest that EBITDA will lift 3 times in FY 2027 and then more than double in FY 2028. The Megaport share price ended the week at $18.38.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Why Megaport, Lendlease and JB Hi-Fi shares all crashed 14% to 15% this week
• 8 ASX shares just upgraded by the experts
• 3 ASX shares UBS says will return better than 36%
• Buy, hold, sell: Fortescue, Northern Star, and Megaport shares
• Why were Goodman shares just downgraded?

Motley Fool contributor James Mickleboro has positions in Goodman Group and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Macquarie Group, and Megaport. The Motley Fool Australia has recommended Goodman Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 healthcare shares vastly outperformed their peers, rising 9.21%, as earnings season continued last week.

Pleasing FY26 reports from heavyweights CSL Ltd (ASX: CSL) and Pro Medicus Ltd (ASX: PME) turbocharged the sector.

The broader S&P/ASX 200 Index (ASX: XJO) slipped 0.62% over the week to 9,058.9 points on Friday.

Healthcare is in the middle of a rapid recovery following a 29% slump over the 12 months to early June.

The S&P/ASX 200 Health Care Index (ASX: XHJ) reached a 9-year low on 3 June.

The sector then pivoted as value investors rushed in to snap up blue-chips on the cheap.

Healthcare shares have skyrocketed 41% since 3 June, compared to a 3% rise for the ASX 200.

Let’s review some specifics from last week.

Healthcare shares led the ASX sectors last week

Last week, several major healthcare companies revealed their latest periodic earnings results.

The CSL share price leapt 23.3% to $168.30 on the strength of its FY26 results last week.

CSL shares have rocketed 82% since the healthcare sector rebound began on 3 June.  

Pro Medicus shares jumped 7.1% to $191.60 on the back of the company’s FY26 report.

The Pro Medicus share price is up 20% since 3 June. 

The Cochlear Ltd (ASX: COH) share price rose 1.4% to $135.48 following the hearing implant maker’s FY26 report.

Cochlear shares have increased 42% since 3 June.

The Healius Ltd (ASX: HLS) share price jumped 13.8% to 46 cents following its FY26 report last week.

Healius shares are up 38% since 3 June.

The EBOS Group Ltd (ASX: EBO) share price ascended 7.2% to $18.96 following the company’s FY26 results.

EBOS shares are up 20% since 3 June.

The Mesoblast Ltd (ASX: MSB) share price lifted 6.8% to $2.36 following a phase 3 trial update.

Mesoblast shares have risen 17% since 3 June.  

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Healthcare (ASX: XHJ)	9.21%
Materials (ASX: XMJ)	5.61%
Energy (ASX: XEJ)	3.5%
Utilities (ASX: XUJ)	0.85%
Communication Services (ASX: XTJ)	(1.41%)
Industrials (ASX: XNJ)	(2.08%)
Consumer Staples (ASX: XSJ)	(2.65%)
Information Technology (ASX: XIJ)	(3.57%)
A-REIT (ASX: XPJ)	(4.43%)
Financials (ASX: XFJ)	(5.11%)
Consumer Discretionary (ASX: XDJ)	(6.55%)

The post ASX 200 healthcare shares soar 9% amid notable FY26 reports from CSL, Pro Medicus appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 16 ASX 200 shares with ex-dividend dates next week
• 3 ASX 200 stocks, including CSL, leaping 15% to 23% in this week’s sliding market
• 8 ASX shares just upgraded by the experts
• Why Guzman Y Gomez, Pro Medicus and James Hardie shares are turning heads on Friday

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL, Cochlear, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Warren Buffett has built his fortune by buying shares in businesses he believes can compound wealth over many years. While the Oracle of Omaha doesn’t typically buy ASX shares, his investing principles can still help Australian investors identify potentially attractive shares.

Here are five things to look for.

Buy businesses you understand

Buffett has repeatedly stressed the importance of staying within his circle of competence.

That means understanding how a company makes money, what drives its earnings and what could threaten its competitive position.

On the ASX, that could mean favouring familiar businesses such as Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) or Wesfarmers Ltd (ASX: WES), provided their valuations make sense.

The point isn’t to buy familiar names blindly. It’s to avoid investing in ASX shares you can’t properly assess.

A durable competitive advantage

Buffett’s famous economic moat is central to his strategy. I’d look for ASX shares with something that makes it difficult for competitors to steal customers and profits.

That could be a powerful brand, network effects, switching costs, intellectual property, scale or a structural advantage in an industry.

A company with a strong moat can potentially maintain attractive returns on capital for years.

Consistent earnings and cash flow

Great stories aren’t enough. I’d want to see evidence that a business can consistently generate profits and cash.

Strong cash flow gives companies more flexibility to reinvest in growth, reduce debt, pay dividends and potentially buy back shares.

This is particularly important when looking for long-term compounders. A business that repeatedly needs fresh capital to survive isn’t the sort of ASX share Buffett typically favours.

A strong balance sheet

Debt can magnify returns when things go well — and magnify problems when they don’t.

Buffett has long emphasised financial strength and the ability of businesses to withstand difficult economic conditions. I’d therefore examine a company’s debt levels, interest costs, cash position and ability to meet its financial obligations.

A robust balance sheet can give an ASX share the flexibility to take advantage of opportunities when weaker competitors are struggling.

A sensible valuation

Perhaps the biggest mistake investors can make is confusing a great business with a great investment. Even an exceptional company can produce disappointing returns if investors pay an excessive price.

I’d therefore compare the price of an ASX share with earnings, cash flow, growth prospects and the company’s historical valuation.

Buffett doesn’t try to predict what a share will do next month. He focuses on whether the price makes sense relative to the underlying business.

The Buffett test

Finding Buffett-style ASX shares isn’t about discovering a secret formula. I’d look for understandable businesses with durable moats, reliable cash generation, strong balance sheets and attractive valuations.

Then comes the hardest part: having the patience to let those businesses compound.

As Buffett’s strategy demonstrates, successful investing is often less about finding the next hot ASX share and more about avoiding bad businesses and paying too much for good ones.

The post 5 things Warren Buffett looks for before buying ASX shares appeared first on The Motley Fool Australia.

More reading

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• 3 reasons to buy CBA shares following its results
• Want income for life? Here’s how I’d build an ASX dividend portfolio
• How ASX dividend growth shares can build lasting income
• My top 5 ASX 200 shares to buy and hold

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