Once again, 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:

Deterra Royalties Ltd (ASX: DRR)

According to a note out of Morgans, its analysts have retained their buy rating on this mining royalties company’s shares with a trimmed price target of $4.75. This follows news that Deterra has announced the acquisition of a royalty on ~84% of Ivanhoe Electric’s Santa Cruz copper project for US$74.15 million in cash. Morgans values the Santa Cruz royalty at A$110 million or A$0.21 per share and expects it to be around 7% earnings accretive. Outside this, the broker sees Deterra Royalties as a formidable inflation hedge with upside leverage to metal prices. The Deterra Royalties share price ended the week at $3.92.

Megaport Ltd (ASX: MP1)

Another note out of Morgans reveals that its analysts have retained their buy rating on this cloud infrastructure company’s shares with an improved price target of $27.00. The broker made the move in response to Megaport lifting its FY 2027 EBITDA guidance by 25% following further contract wins. Morgans highlights that Megaport’s compute and network businesses continue to deliver above expectations, with three new AI infrastructure contracts boasting a total contract value of around $1 billion. Collectively, it believes these set a path for annualised EBITDA in excess of $850 million, which has led to a material increase in Morgans’ earnings per share forecasts. The Megaport share price was fetching $18.78 at Friday’s close.

Mesoblast Ltd (ASX: MSB)

Analysts at Bell Potter have retained their buy rating and $4.45 price target on this biotechnology company’s shares. According to the note, the broker has described Mesoblast as an enigma for most Australian long only institutions. This is despite having achieved multiple clinical trial successes, product approvals, and having revenues likely to exceed US$200 million in FY 2027. However, Bell Potter expects this information gap to close over the coming year as the company delivers on additional wins in the clinic. As a result, the broker sees now as a great time to snap up the company’s shares. The Mesoblast share price ended the week at $2.00.

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

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Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

ASX 200 utilities shares led the market sectors with a 3.64% gain last week.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) rose 0.4% to close at 8,716.6 points.

Defensive market sectors represent industries that sell essential goods and services.

They offer stability to investors during tough economic times because consumers continue to buy those goods and services.

Utilities is one example, healthcare and consumer staples are others.

ASX 200 healthcare shares also performed well last week, rising 3.53%.

Consumer staples shares, which incorporate Australia’s supermarkets and food producers, rose 2.31%.

ASX 200 REITs, which are considered somewhat defensive due to their relatively reliable property income, rose 3.58%.

Seven of the 11 market sectors finished the week in the green.

Let’s review.

Utilities shares led the ASX sectors last week

There are only 21 companies in the ASX 200 utilities sector.

Let’s review the performance of individual stocks in order of market capitalisation last week.

The Origin Energy Ltd (ASX: ORG) share price increased 4.31% to $11.37 last week.

The APA Group (ASX: APA) share price rose 2.81% to close at $10.97 on Friday.

Mercury NZ Ltd (ASX: MCY) shares lifted 0.72% to $5.60 per share.

The Meridian Energy Ltd (ASX: MEZ) share price fell 1.14% to $4.34 over the week.

The AGL Energy Limited (ASX: AGL) share price ascended 3.44% to close the week at $8.43.

New Zealand electricity supplier Contact Energy Ltd (ASX: CEN) rose 1.91% to $6.93 per share.

Genesis Energy Ltd (ASX: GNE) shares fell 3.45% to $1.96 per share.

The LGI Ltd (ASX: LGI) share price ripped 23.16% to $2.34 on news of a $22 million acquisition of solar power assets.

Frontier Energy Ltd (ASX: FHE) shares tumbled 13.04% to 20 cents despite no company announcements last week.

The Rivco Australia Ltd (ASX: RIV) share price increased 0.83% to $1.21 per share.

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
Utilities (ASX: XUJ)	3.64%
A-REIT (ASX: XPJ)	3.58%
Healthcare (ASX: XHJ)	3.53%
Consumer Discretionary (ASX: XDJ)	2.4%
Consumer Staples (ASX: XSJ)	2.31%
Energy (ASX: XEJ)	2%
Industrials (ASX: XNJ)	0.02%
Communication (ASX: XTJ)	(0.19%)
Financials (ASX: XFJ)	(0.31%)
Materials (ASX: XMJ)	(1%)
Information Technology (ASX: XIJ)	(1.97%)

Check out the 17 ASX shares going ex-dividend next week.

The post ASX 200 defensive sectors outperform amid volatile trading appeared first on The Motley Fool Australia.

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

PLS vs Zip shares: Which could be a future multibagger?

When hunting for the next 10-bagger on the ASX, investors often find themselves weighing up established resource plays like PLS Group Ltd (ASX: PLS) and high-growth tech disruptors such as Zip Co Ltd (ASX: ZIP). Both companies have made a splash in their sectors: PLS Group powering Australia’s lithium ambitions, Zip shaking up the way we shop and pay. But which has the better shot at exponential returns? Here’s my breakdown of PLS Group vs Zip shares.

The case for PLS Group

PLS Group, formerly Pilbara Minerals, is a leader in Australia’s booming lithium sector. Its main asset, the Pilgangoora Lithium-Tantalum Project in WA, is one of the world’s biggest hard-rock lithium deposits. The company’s recent move into Brazil with the Colina lithium project expands its international footprint and resource base.

Turning to the key numbers:

• Market cap stands at $12.52 billion, making PLS a heavyweight in the critical minerals space.
• P/E ratio is 23.61, putting it in the “growth at a reasonable price” zone – at least vs. some resource names.
• Dividend yield, though modest at 1.31%, is fully franked – a rarity amongst lithium producers. This means shareholders may enjoy tax benefits on dividends.

Notably, the company posted an earnings per share (EPS) of $0.161 and returned $0.05 per share in dividends over the past year. However, the share price has slid 8.5% year to date, reflecting the volatility often seen in battery minerals.

The case for Zip

Zip is an ambitious fintech, best known for its digital “buy now, pay later” (BNPL) platform that operates across 12 countries. Zip aims to replace old-fashioned credit card debt with flexible, interest-free alternatives. Its two main products, Zip Pay and Zip Money, help customers spread out payments, making it popular among younger consumers and those wary of traditional credit.

Looking at the fundamentals:

• Market cap sits at $2.64 billion – about one fifth the size of PLS Group, but still a major player among local fintechs.
• P/E ratio is 22.85, almost matching PLS Group’s, showing a growth tilt even after a major short-term price pullback.
• Zip has not paid any dividend, choosing instead to reinvest back into international expansion and product development.

EPS for the last period was $0.091. What stands out sharply is its year to date return: down 37.1%, reflecting huge volatility and the ongoing challenges facing the BNPL sector.

Valuation comparison

Here’s how the two companies stack up on core metrics:

Metric	PLS Group	Zip
Market Cap	$12.52 billion	$2.64 billion
P/E Ratio	23.61	22.85
Dividend Yield	1.31% (100% franked)	0.00%
EPS	$0.161	$0.091
YTD Return	-8.53%	-37.08%

Note: Both companies’ P/E ratios are closely matched, but given they sit in very different sectors (resources vs. fintech), direct read-across can be misleading. Also, the EPS and P/E for each seems internally consistent, no red flags on calculation.

PLS Group stands out for actually paying a dividend and offering full franking. Zip, like most growth fintechs, is holding back on payouts to fund further expansion.

Recent share price momentum

Comparins recent share price performance up to 7 October:

• PLS Group closed at $3.88, up 1.8% on the day, but the 2026 year-to-date result is still a decline of 8.5%.
• Zip closed at $2.12, up 2.4% for the session, though still a brutal 37.1% loss year to date.

These readings show both are well off their 52-week highs. PLS Group’s pullback looks mild compared to Zip’s sharp slide, but both have seen some recent short-term positivity.

Which is the better buy?

If I’m searching for a potential ASX 10-bagger, I want explosive upside – but also a business that can deliver sustainable growth, not just hype. Zip, with its bruising share price and no dividend, certainly offers high risk and (in theory) high reward if it can crack profitability at scale and beat competitors. It’s a genuine disruptor but up against tough headwinds and rapidly shifting regulatory sands.

PLS Group, on the other hand, is already profitable, spinning off modest fully franked dividends, and positioned right in the thick of the global energy transition. The lithium market is volatile, but the underlying demand should keep growing as EV adoption increases. PLS Group isn’t without risk – lithium prices can swing wildly, and it is much harder for a $12 billion company to multiply tenfold than it is for a $2 billion upstart.

All things considered, if I had to back a future 10-bagger from these two, I’d lean — albeit cautiously — toward Zip. Its beaten-down share price and scalable business model give it more sheer mathematical upside, despite the clear risks. But this is not a low-risk play: only for those comfortable with volatility and the possibility of further steep losses. PLS Group feels more of a “steady compounder” right now – less likely to lose your shirt, but also less likely to shoot the lights out.

The post PLS Group vs Zip: Which ASX share could be a 10-bagger? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Laura Stewart 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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.