It was another busy week for Australia's top brokers. This has led to the release of a 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:
According to a note out of Goldman Sachs, its analysts have retained their buy rating and $10.00 price target on this KFC-focused quick service restaurant operator's shares. This follows the release of a market update last week. Goldman notes that Collins Foods is planning to double down on its European expansion with the KFC brand and exit its struggling Taco Bell business in Australia. The broker was pleased with the news as it believes Taco Bell has drawn too much focus from management and the exit of the loss-making operation should provide an earnings uplift from FY 2027. In respect to its European expansion, Goldman points out that Germany is a large, underpenetrated, and relatively favourable development environment for the KFC brand. This bodes well for its long term growth. The Collins Foods share price ended the week at $8.08.
A note out of Morgan Stanley reveals that its analysts have upgraded this investment platform provider's shares to an overweight rating with an improved price target of $31.25. Its analysts were pleased with Netwealth's performance during the third quarter. Morgan Stanley highlights that the company recorded further strong growth in its funds under administration (FUA) during the three months. The good news is that the broker believes this trend will continue. Especially given how it expects advisers to continue migrating from incumbent platforms to specialist platforms. It points out that its market share is very small in comparison to incumbent platforms, giving it a long runway for growth as the structural shift continues. As a result, it feels recent share price weakness has presented investors with a compelling buying opportunity. The Netwealth share price was fetching $25.83 at Friday's close.
Analysts at Bell Potter have retained their buy rating and $112.50 price target on this logistics solutions company. According to the note, the broker believes that investors have been selling down the company's shares following governance issues, product delays, and a higher P/E starting point. Bell Potter thinks the selloff has been overdone and has created an attractive entry point in a quality growth company. The WiseTech Global share price ended the week at $82.00.
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