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:
SEEK Limited (ASX: SEK)
According to a note out of UBS, its analysts have retained their buy rating and lifted their price target on this job listings giant’s shares to $35.00. The broker is feeling confident about SEEK’s long term aspirations and is expecting its ANZ revenues to grow strongly over the next five years. In the meantime, the broker sees upside from ad yield increases. The SEEK share price is fetching $29.71 this afternoon.
Temple & Webster Group Ltd (ASX: TPW)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this online furniture and homewares retailer’s shares to $14.62. This follows the release of its full year results for FY 2021. Credit Suisse was pleased with the company’s execution in FY 2021 and the strong start it has made to FY 2022. Looking longer term, the broker believes the company is well-placed to benefit from increasing online penetration and market share gains. Particularly given its investment in marketing and advertising to grow brand awareness. The Temple & Webster share price is trading at $12.27 today.
Xero Limited (ASX: XRO)
Another note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this accounting platform provider’s shares to $160.00. Credit Suisse notes that Xero is its top pick in the tech sector and believes the company is well-placed for growth. Particularly give its positive subscriber growth outlook and its expectation for increases in its average revenue per user metric. The Xero share price is fetching $138.51 on Wednesday.