It was another busy week for Australia’s top brokers, with a number of new research 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 could be worth buying:

Megaport Ltd (ASX: MP1)

According to a note out of Bell Potter, its analysts have retained their buy rating on this cloud infrastructure company’s shares with a slightly reduced price target of $26.00. While the broker has lowered its valuation to reflect weaker share prices across the sector, it has actually increased its earnings forecasts. Bell Potter believes it previously underestimated the contribution from Megaport’s expanding AI infrastructure business, particularly the computing power it is supplying to customers. It now expects underlying EBITDA of approximately $770 million in FY 2028, up from its previous forecast of $726 million. The broker also highlights Megaport’s strong growth prospects, fully funded expansion plans, and attractive valuation. It estimates that the shares are trading at just six times forecast FY 2028 EBITDA. The Megaport share price ended the week at $16.50.

Paladin Energy Ltd (ASX: PDN)

A note out of Morgans reveals that its analysts have upgraded this uranium producer’s shares to a buy rating with a slightly reduced price target of $13.10. This follows Paladin’s first-quarter update, which revealed uranium production of 1 million pounds at its Langer Heinrich mine. While this was below market expectations, Morgans notes that a slow start to FY 2027 was anticipated due to a planned plant shutdown and lower recovery rates. Importantly, mining performance improved during the quarter, while the average selling price of uranium increased 12% to a record US$79.40 per pound. With Paladin shares falling recently, Morgans believes the risk-reward balance has become more favourable for investors. The Paladin Energy share price was fetching $7.32 at Friday’s close.

PLS Group Ltd (ASX: PLS)

Another note out of Bell Potter reveals that its analysts have upgraded this lithium producer’s shares to a buy rating with a trimmed price target of $4.40. According to the note, the broker has lowered its near-term lithium price forecasts due to weaker market conditions and concerns about a potential supply surplus in 2027. However, Bell Potter still sees plenty of reasons to be positive about PLS Group’s outlook. It believes the company can generate substantial earnings and cash flow at current lithium prices, particularly with the restart of its Ngungaju processing plant. The broker also highlights potential production growth from future developments, supported by long-term demand for electric vehicles and battery energy storage systems. With the recent decline in its share price, Bell Potter believes investors are being offered an opportunity to gain exposure to this growth at an attractive price. The PLS Group share price ended the week at $2.98.

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 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.

I’ve been looking at ASX shares that I think the market may be underestimating in terms of what the business could achieve over the next few years.

Three companies stand out to me, each with an opportunity to deliver stronger earnings and potentially reward patient investors.

Here’s why I think they are worth buying.

WiseTech Global Ltd (ASX: WTC)

WiseTech has had a difficult period, but I think there is still an excellent business underneath the uncertainty.

Its CargoWise software is deeply embedded in global logistics operations, helping customers manage everything from shipments and customs documentation to complex international supply chains.

I like the company’s opportunity to generate more revenue from customers already using its technology. WiseTech is introducing a transaction-based commercial model, which could allow revenue to grow as customers process more activity through CargoWise.

The acquisition of e2open also gives it access to a much larger network of businesses across global supply chains.

Of course, management has plenty to prove. Integrating e2open, delivering the benefits of its new commercial model, and navigating changes brought by artificial intelligence will all require careful execution.

But with ASIC’s investigations into the company and key personnel recently concluded without enforcement action, one important uncertainty has been removed.

And I think the valuation leaves room for a recovery. WiseTech shares are trading on a PE ratio of approximately 26 times FY27 earnings, falling to around 16 times FY29 earnings based on consensus forecasts.

If management delivers the expected growth, I think WiseTech’s share price could be much higher than where it trades today.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is another ASX share I think deserves more attention.

The retailer operates several youth-focused fashion brands, including Universal Store, Perfect Stranger, and Thrills.

What I like is its ability to develop brands that connect with younger consumers while continuing to expand its retail footprint.

There are opportunities to open additional stores, grow online sales, and improve profitability as the business becomes larger.

Despite consensus estimates forecasting solid earnings growth through to at least FY29, they are trading on a PE ratio of around 14 times forecast FY27 earnings.

There is also a forecast dividend yield of approximately 5.6% for FY27.

I think that is an attractive combination of income and growth for investors prepared to accept the risks of retailing.

Flight Centre Travel Group Ltd (ASX: FLT)

My final pick is Flight Centre, which I think could reward investors willing to wait for better conditions in the travel industry.

Geopolitical tensions, higher fuel prices, and more expensive airfares have created a difficult environment.

But Flight Centre has been using this period to strengthen its business. Management has materially reduced costs, while acquisitions made around the bottom of the travel cycle have expanded its offering in specialist markets.

I especially like its substantial corporate travel operations, where it has established relationships with businesses around the world.

As travel conditions improve, I think Flight Centre could benefit from stronger demand flowing through a leaner and more diversified business.

And investors are paying a relatively modest price for that potential. At current levels, Flight Centre trades on less than nine times forecast FY28 earnings, with an expected dividend yield of around 5% for that year.

The recovery could take time, but I think the potential reward makes the shares worth buying.

Foolish takeaway

I think all three ASX shares have a reasonable chance of being worth considerably more in a few years.

There is execution risk involved, particularly with WiseTech and Flight Centre, but I believe their current valuations leave room for attractive returns.

I’d be happy to buy at today’s prices and give these businesses time to deliver.

The post 3 undervalued ASX shares I would buy today appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Appen, Flight Centre, and Telstra shares
• Should I buy WiseTech shares after today’s big news?
• If I invest $5,000 in Flight Centre shares, what passive income could I earn in FY27?

Motley Fool contributor Grace Alvino 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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Flight Centre Travel Group and Universal Store. 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 11 market sectors with a 4.47% gain, capitalising on a 3.64% lift the week before.

ASX 200 healthcare shares rose 3.88%, adding to their 3.53% increase the week before.

Last week was the second consecutive case of these traditionally defensive sectors outperforming their peers.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) rose 1.03% to close at 8,806.7 points.

Defensive shares tend to do well amid economic uncertainty.

Investors remain worried about a potential fifth interest rate hike in November due to persistently high inflation.

Experts described a hawkish tone in the minutes of this month’s Reserve Bank (RBA) board meeting, released on Tuesday.

However, news on Thursday of a rise in unemployment to 4.7% in September eased fears of another rate hike somewhat.

The market is now pricing in a 16% chance of the RBA raising the cash rate to 4.85% next month.

Eight of the 11 market sectors finished in the green last week.

Let’s recap.

Utilities shares led the ASX sectors last week

Just 21 companies make up the ASX 200 utilities sector.

Here’s how the top companies by market capitalisation performed last week.

The Origin Energy Ltd (ASX: ORG) share price ripped 6.06% to close at $12.06 on Friday.

The APA Group (ASX: APA) share price ascended 2.37% to $11.23.

Mercury NZ Ltd (ASX: MCY) shares decreased 2.68% to $5.45 per share.

The Meridian Energy Ltd (ASX: MEZ) share price rose 4.61% to close at $4.54.

AGL Energy Ltd (ASX: AGL) shares lifted 4.27% to $8.79 apiece.

Contact Energy Ltd (ASX: CEN) shares edged 1.59% higher to $7.04 per share.

Genesis Energy Ltd (ASX: GNE) shares fell 1.28% to $1.94.

The LGI Ltd (ASX: LGI) share price soared 6.84% to $2.50.

In the healthcare sector, CSL Ltd (ASX: CSL) shares rose 4.55% to $192.20.

Sigma Healthcare Ltd (ASX: SIG) shares increased 5.95% to $2.85 apiece.

The Resmed CDI (ASX: RMD) share price ascended 5.43% to $34.35.

The Pro Medicus Ltd (ASX: PME) share price rose 6.03% to $175.73.

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)	4.47%
Healthcare (ASX: XHJ)	3.88%
Consumer Staples (ASX: XSJ)	3.35%
Financials (ASX: XFJ)	3.2%
Consumer Discretionary (ASX: XDJ)	2.15%
Energy (ASX: XEJ)	1.31%
Industrials (ASX: XNJ)	0.61%
Communication (ASX: XTJ)	0.42%
Information Technology (ASX: XIJ)	(1.28%)
A-REIT (ASX: XPJ)	(1.73%)
Materials (ASX: XMJ)	(2.31%)

The post ASX 200 utilities and healthcare shares win the week again 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 positions in and has recommended CSL and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Apa Group and ResMed. The Motley Fool Australia has recommended CSL, LGI Limited, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.