Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

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It has been another busy week for Australia's top brokers. This has led to the release of a 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:

Neuren Pharmaceuticals Ltd (ASX: NEU)

According to a note out of Bell Potter, its analysts have retained their buy rating on this pharmaceutical company's shares with a slightly trimmed price target of $26.50. This follows the release of an update on Daybue sales in the United States. While those sales were just short of guidance, this was driven by pre-flagged seasonality impacts. The good news is that FY 2024 guidance remains unchanged. In light of this, Bell Potter is expecting another standout year for Neuren. In addition, the broker is eagerly awaiting phase 2 clinical readouts from the company's second drug candidate, NNZ-2591. It notes that Pitt Hopkins Phase 2 results are due in the current quarter, followed by Angelman results in the third quarter. The Neuren share price is trading at $19.00 on Friday.

REA Group Ltd (ASX: REA)

A note out of Morgan Stanley reveals that its analysts have reaffirmed their overweight rating and $210.00 price target on this property listings company's shares. This follows the release of a quarterly update which revealed very strong sales and earnings growth from the realestate.com.au operator. The broker notes that REA Group slightly outperformed analyst expectations. It also significantly outperformed its closest rival, which is cementing its market leadership position further. This bodes well for the future and supports the broker's forecast for further solid growth in the near term. The REA share price is fetching $187.43 this afternoon.

TechnologyOne Ltd (ASX: TNE)

Analysts at Goldman Sachs have retained their buy rating on this enterprise technology company's shares with an improved price target of $18.10. The broker has been looking ahead to TechnologyOne's half year results release later this month. It is expecting the company to report annual recurring revenue growth of 35%, which will be a touch ahead of consensus estimates. All in all, the broker believes the company is performing above expectations for ARR and earnings growth and that this is not being fully reflected in its valuation. As a result, Goldman believes that now would be a good time for investors to snap up its shares. The TechnologyOne share price is trading at $16.36 on Friday afternoon.

Motley Fool contributor James Mickleboro has positions in Technology One. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, REA Group, and Technology One. The Motley Fool Australia has recommended REA Group and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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