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:

DroneShield Ltd (ASX: DRO)

According to a note out of Bell Potter, its analysts have retained their buy rating on this counter-drone technology company’s shares with a trimmed price target of $2.40. The broker highlights that DroneShield’s first-half underlying EBITDA was a material miss. However, Bell Potter points out that its first-half revenue was in line with expectations and its updated committed revenue for FY 2026 now stands at $240 million. It believes that this means DroneShield is likely to achieve the top-end of its guidance range for the year. This is especially the case given the new proprietary RfAI-3 software engine and flagship next-generation RfRecon hardware are generating strong early customer interest. It expects the high-moat next gen products to drive continued contract wins, particularly from Europe. The DroneShield share price ended the week at $1.75.

Sigma Healthcare Ltd (ASX: SIG)

A note out of Morgans reveals that its analysts have upgraded this pharmacy chain operator’s shares to a buy rating with a trimmed price target of $3.19. This follows the release of its FY 2026 result, which was in line with expectations. Morgans was also pleased with Sigma’s guidance for FY 2027, noting that it is targeting double-digit revenue and earnings growth. In light of this, the broker feels that recent share price weakness is overdone and provides investors with an opportunity to buy shares at an attractive price. The Sigma Healthcare share price was fetching $2.68 at Friday’s close.

WiseTech Global Ltd (ASX: WTC)

Another note out of Morgans reveals that its analysts have retained their buy rating on this logistics technology company’s shares with a slightly reduced price target of $62.50. It highlights that WiseTech Global delivered a result that was largely in line with its expectations in FY 2026. And while CargoWise revenue growth was softer than expected, it was pleased with the annualised run-rate savings of ~US$115 million. The broker was also pleased to see management guiding to improving margins in FY 2027, which has led to an upgrade to its estimates for the year. The WiseTech Global share price ended the week at $40.61.

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

More reading

• 4 ASX shares scoring upgrades in the final week of earnings season
• Buy, hold, sell: Netwealth, Sigma Healthcare, and Wesfarmers shares
• 3 ASX 200 shares to buy post-results: broker
• 9 ASX 200 shares with strengthened buy ratings this week
• WiseTech shares are bouncing back. Is it time to buy?

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

ASX 200 materials and mining shares outperformed the other 10 market sectors last week.

Materials and mining stocks rose by a modest 2.5% over the week, according to CommSec data.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) closed out the week up 0.37% to 9,092.3 points on Friday.

Only four sectors finished in the green last week.

Let’s review.

ASX materials and mining shares led the market

As earnings season continued last week, several ASX mining shares reached new record highs.

Among them was BHP Group Ltd (ASX: BHP), which reset its historical high at $68.77 per share on Wednesday.

BHP is not only the largest miner on the market, it’s also the most valuable company of the entire ASX 200.

The BHP share price finished the week 3.28% higher at $67.30 per share.

The Fortescue Ltd (ASX: FMG) share price increased 1.8% to $18.07.

Rio Tinto Ltd (ASX: RIO) shares lifted 1.52% to $178.04.

Diversified ASX 200 miner, Mineral Resources Ltd (ASX: MIN), fell 1.25% to $65.46 per share.

The South32 Ltd (ASX: S32) share price leapt 7.36% to $5.25 on Friday.

Pure-play ASX copper share Sandfire Resources Ltd (ASX: SFR) surged 7.81% to $23.34 per share.

ASX gold share Northern Star Resources Ltd (ASX: NST) ascended 3.38% to $24.78.

Newmont Corporation CDI (ASX: NEM) shares rose 1.64% to $182.80.

The Evolution Mining Ltd (ASX: EVN) share price closed at $15.67, up 2.08%.

ASX 200 lithium stock PLS Group Ltd (ASX: PLS) jumped 5.72% to $5.36 per share.

The IGO Ltd (ASX: IGO) share price rose 2.63% to $8.58.

Lynas Rare Earths Ltd (ASX: LYC) shares edged 0.31% higher to $16.26.

Among the non-mining ASX 200 materials shares, BlueScope Steel Ltd (ASX: BSL) rose 1.48% to $30.86.

The James Hardie Industries plc (ASX: JHX) share price fell 3.31% to $41.42.

Orica Ltd (ASX: ORI) shares decreased 0.81% to $21.98.

Several mining shares are among 37 companies going ex-dividend next week.

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
Materials (ASX: XMJ)	2.5%
Consumer Staples (ASX: XSJ)	1.82%
Healthcare (ASX: XHJ)	1.11%
Industrials (ASX: XNJ)	0.14%
Financials (ASX: XFJ)	(0.30%)
Utilities (ASX: XUJ)	(0.46%)
Information Technology (ASX: XIJ)	(0.47%)
Energy (ASX: XEJ)	(1.37%)
Consumer Discretionary (ASX: XDJ)	(1.7%)
A-REIT (ASX: XPJ)	(1.94%)
Communication (ASX: XTJ)	(2.23%)

The post ASX 200 mining shares outperform in final week of earnings season appeared first on The Motley Fool Australia.

More reading

• If I invest $15,000 in Fortescue shares, how much passive income will I receive in 2027?
• Why gold stocks have regained their shine: Expert
• Could ASX shares crash? 5 questions every investor should ask now
• Here are the top 10 ASX 200 shares today
• Northern Star shares are closing in on $25. Can the rally keep going?

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 recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Fortescue Ltd (ASX: FMG) shares has been very rewarding for passive income over the last five years, as the ASX mining share has made the most of iron ore price strength at various times.

As an ASX iron ore share, the company has a lot of operating leverage when the commodity price rises.

Production costs don’t typically change much month to month, so a rise in the iron ore price can boost revenue, and most of that can flow straight into the net profit. However, the reverse can be true when iron ore prices fall.

Fortescue can control how much iron ore it produces, but it has little control over what happens with the iron ore price. Let’s take a look at what analysts think could happen with the Fortescue dividend in FY27.

Dividend projection for FY27

Forecast payments are not guarantees for shareholders. The dividend could be better than projected. It could also be lower than expected.

But given the current iron price and forecasts, analysts are predicting that the FY27 payout will be lower than the annual payment for the 2026 financial year.

In FY26, Fortescue grew revenue by 9% to US$17 billion, underlying EBITDA (EBITDA explained) grew by 9% to US$5.6 billion, and underlying net profit after tax (NPAT) rose 3% to US$3.45 billion.

However, due to foreign currency fluctuations, the underlying earnings per share (EPS) fell by 2% in Australian dollar terms to A$1.66. This led to a 2% reduction in the full-year dividend to A$1.08 per share.

According to the projection on Commsec, owners of Fortescue shares could see the annual dividend payment decline to AUD 85.9 cents in FY27.

At the time of writing, that potential payout translates into a dividend yield of 4.8% excluding franking credits and 6.8% including franking credits.

Let’s see what would happen if someone invested $15,000 into Fortescue shares.

Potential payout with $15,000 invested in Fortescue shares

At the time of writing, an investor would be able to buy 836 Fortescue shares with $15,000.

Assuming the ASX mining share does deliver the projected payout, then owning 836 Fortescue shares could possibly deliver A$718 cash and another A$307.77 of franking credits for a combined total of around $1,026 of grossed-up dividend income, including the franking credits.

Is this the right time to invest? Analysts seem mixed on the business. According to Commsec, there are currently seven sell ratings on the business, eight hold ratings and two buy ratings.

Overall, experts are leaning more negative than positive, so it could be a good idea to consider other ASX share ideas.

The post If I invest $15,000 in Fortescue shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn from $500,000 in superannuation?
• 37 ASX shares going ex-dividend next week
• How much is needed in superannuation for $2,500 in weekly passive income?
• Should I invest $10,000 into Fortescue shares?
• Here’s the dividend forecast out to 2028 for Fortescue shares

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 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.