Top brokers name 3 ASX shares to buy today

Top brokers have named Rio Tinto Limited (ASX:RIO) and these ASX shares as buys. Here’s why they are bullish on them…

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Nitro Software Ltd (ASX: NTO)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $3.70 price target on this document productivity software company’s shares. Morgan Stanley notes that Nitro has reiterated its guidance at a recent conference and revealed that it continues to experience strong demand for its offering. Its analysts also see opportunities for stronger returns from cross selling and upselling to enterprises. The Nitro share price is currently fetching $2.79.

Rio Tinto Limited (ASX: RIO)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $140.00 price target on this mining giant’s shares. According to the note, the broker acknowledges that iron ore prices have pulled back meaningfully over the last couple of weeks. Despite this, Macquarie remains very positive on miners with exposure to iron ore and is expecting strong free cash flow yields thanks to high prices. This bodes well for dividends in the near future. The Rio Tinto share price is trading at $119.55.

TechnologyOne Ltd (ASX: TNE)

Analysts at Morgans have retained their add rating and lifted their price target on the enterprise software company’s shares slightly to $10.00. This follows the release of TechnologyOne’s half year results earlier this week. Morgans notes that the company delivered a strong result and full year guidance in line with its expectations. In addition to this, based on new customer addition rates and current average spending, it believes TechnologyOne is on a path to achieving its $500 million annualised recurring revenue (ARR) target by FY 2026. The TechnologyOne share price is trading at $9.17 on Wednesday morning.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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