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:
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IGO Ltd (ASX: IGO)
According to a note out of UBS, its analysts have retained their buy rating and lifted their price target on this battery materials miner's shares to $12.25. UBS has bumped its earnings estimates higher to reflect stronger than expected lithium prices. The broker also highlights that despite weakness in other commodity prices due to recession fears, lithium prices continue to rise. The IGO share price is trading at $9.86 on Friday.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of Citi reveals that its analysts have retained their buy rating and $13.78 price target on this wine giant's shares. Citi believes that wine demand should be relatively more resilient to inflation and interest rates compared to other alcohol segments. In light of this, it feels that Treasury Wine's FY 2022 guidance could prove conservative. Looking ahead, the broker sees potential for EBITS growth of 33% in FY 2023. This reflects price rises, wine demand resilience, and a full year contribution from the Frank Family acquisition. The Treasury Wine share price is fetching $11.43 on Friday.
Xero Limited (ASX: XRO)
Analysts at Morgans have initiated coverage on this cloud accounting company's shares with an add rating and $90.25 price target. Morgans is bullish on Xero due to its significant market opportunity. It also sees potential for the company to boost its revenue per user metric through its app store. And while the broker acknowledges that rising interest rates are a negative for the valuations of growth companies, it appears to see a favourable risk reward here. The Xero share price is trading at $77.32 this afternoon.
