Top brokers name 3 ASX shares to buy next week

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:

Life360 Inc. (ASX: 360)

According to a note out of Bell Potter, its analysts have retained their buy rating on this location technology company's shares with a trimmed price target of $30.00. This follows Life360's third-quarter update, which revealed stronger-than-expected earnings and user growth. The broker highlights that adjusted EBITDA was 9% ahead of its forecast, with a margin of 19.9% compared to the 18.3% expected. Global monthly active users increased by 5.3 million, while paying circles grew by 188,000, with both figures ahead of expectations.

Bell Potter was also encouraged by management narrowing its FY 2026 revenue guidance to US$665 million to US$681 million and adjusted EBITDA guidance to US$132 million to US$138 million. Although the broker has lowered its valuation, it remains positive on Life360's growth outlook and sees recent share price weakness as a buying opportunity. The Life360 share price ended the week at $21.26.

Light & Wonder Inc. (ASX: LNW)

A note out of Morgans reveals that its analysts have retained their buy rating on this gaming technology company's shares with a reduced price target of $165.00). This followed the release of Light & Wonder's third-quarter results, which were a touch mixed. The broker notes that revenue and adjusted EBITDA were below expectations, with weakness in the SciPlay business weighing on performance.

However, Morgans was pleased with the company's strong cash generation, with adjusted free cash flow of US$181 million supporting US$156 million of debt repayments during the quarter. This reduced its leverage ratio to 3.3 times. Looking ahead, the broker believes Light & Wonder is well-positioned for growth in FY 2027, supported by an expanding installed base of gaming machines, new gaming content, and further debt reduction. Despite reducing its earnings forecasts, Morgans believes its shares remain materially undervalued at current levels. The Light & Wonder share price ended the week at $120.37.

Monadelphous Group Ltd (ASX: MND)

Another note out of Morgans reveals that its analysts have retained their buy rating on this engineering company's shares with an increased price target of $38.50. The broker was impressed by Monadelphous' latest trading update, which revealed a much stronger earnings outlook than expected. Management is forecasting first-half FY 2027 net profit of $80 million to $85 million, representing growth of 23% to 31% and comfortably exceeding market expectations. Revenue is also expected to reach approximately $1.7 billion, compared to consensus estimates of $1.5 billion.

Morgans highlights that strong engineering and construction demand, alongside an improving project mix, is driving this performance. Looking ahead, the broker expects further growth in FY 2028 as major projects across gold, lithium, rare earths, and energy ramp up. In response, Morgans has upgraded its FY 2027 earnings forecasts, including an 11% increase to its net profit estimate of $159 million. The Monadelphous share price ended the week at $33.94.

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

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Light & Wonder Inc. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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