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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ANZ Group Holdings Ltd (ASX: ANZ)
According to a note out of Citi, its analysts have retained their buy rating on this banking giant's shares with an improved price target of $27.00. Citi has boosted its earnings estimates to reflect its belief that two further cash rate hikes are coming and will positively impact ANZ's net interest margin. The ANZ share price is trading at $23.26 on Friday afternoon.
CSL Limited (ASX: CSL)
Another note out of Citi reveals that its analysts have retained their buy rating on this biotherapeutics company's shares with a trimmed price target of $340.00. This follows the release of a trading update that revealed that CSL Behring margins aren't going to improve as quickly as hoped. Citi now expects its margins to recover to pre-COVID levels in FY 2027. And while this has led to a reduction in its earnings estimates, the broker still believes its shares are cheap when valued on its 10-year average PE ratio. The CSL share price is fetching $277.88 today.
Xero Limited (ASX: XRO)
Analysts at Goldman Sachs have retained their buy rating and $130.00 price target on this cloud accounting platform company's shares. Goldman was pleased to see that Xero is increasing prices in the ANZ region. It notes that the quantum of the price rises are greater than it was expecting, which it feels poses upside risk to its FY 2024 forecasts. The Xero share price is trading at $116.59 on Friday.
