It has been another busy week for Australia's top brokers. This has led to the release of a large 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:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this gaming technology company's shares slightly to $52.00. This follows the release of Aristocrat's full year results. Morgans was pleased with the result and the performance of its newly named Pixel United segment. And while the broker has reduced its earnings estimates and price target slightly to reflect a higher spend on design and development, it still sees plenty of value in the company's shares at the current level. The Aristocrat share price is trading at $44.93 on Friday.
Sonic Healthcare Limited (ASX: SHL)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $46.10 price target on this healthcare company's shares. Morgan Stanley notes that Sonic has released a trading update which revealed solid revenue and earnings growth during the first four months of FY 2022. The broker suspects that this strong start to the year could pose upside risk to estimates. The Sonic share price is fetching $41.06 today.
Xero Limited (ASX: XRO)
Analyst at Citi have retained their buy rating and $160.00 price target on this cloud accounting platform provider's shares. This follows the release of an update from accounting rival Sage. According to the note, Citi sees the trends being seen by Sage in terms of cloud adoption, new customer acquisition and reduction in churn as positive read throughs for Xero. And while it sees Sage's focus on growing its small business segment, especially in the UK, as a threat, it notes that it does not seem to be impacting Xero at this stage. The Xero share price is trading at $149.02 this afternoon.
