It was another busy week for Australia's top brokers. This led to the release of a large number of broker notes.
Three ASX 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:
Liontown Resources Ltd (ASX: LTR)
According to a note out of Bell Potter, its analysts have retained their speculative buy rating and $3.35 price target on this lithium miner's shares. Bell Potter was pleased with news that the company is pushing ahead with its direct shipping ore (DSO) plans. The broker notes that this will generate revenue before full production commences next year. How much? Well, based on current prices (SC6 ~US$3,500/t), Bell Potter suspects that Liontown could generate over $100 million in revenue from its DSO. The Liontown share price was fetching $2.74 at Friday's close.
ResMed Inc. (ASX: RMD)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this sleep treatment company's shares with a $38.40 price target. While Goldman was disappointed with ResMed's quarterly update and weaker margins, it remains positive. The broker highlights that in the context of various unprecedented market dynamics, it feels the factors suppressing ResMed's margins are generally understandable and likely to improve. In light of this, the broker thinks the recent weakness could be a buying opportunity. The ResMed share price ended the week at $30.70.
Xero Limited (ASX: XRO)
Analysts at Goldman Sachs have retained their conviction buy rating on this cloud accounting platform provider's shares with an improved price target of $147. According to the note, the broker believes that small business data shows that this side of the economy is holding up better than expected in the current environment. As a result, the broker has lowered its churn assumptions and boosted its revenue and earnings estimates for the coming years. The Xero share price was trading at $122.20 on Friday.
