It has been another busy week for many of 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 right now:
Sandfire Resources Ltd (ASX: SFR)
According to a note out of Macquarie, its analysts have retained their outperform rating on this copper miner's shares with an improved price target of $10.80. The broker made the move after lifting its copper price forecasts for both the near term and long term. In respect to near term prices, Macquarie has increased its 2024 copper estimate by 7% and its 2025 estimate by 9%. This is being underpinned by concerns over the outlook for copper supply and a favourable demand outlook. Sandfire Resources remains the broker's favoured pick for direct exposure to the base metal. The Sandfire Resources share price is currently changing hands for $9.27.
TechnologyOne Ltd (ASX: TNE)
A note out of Morgans reveals that its analysts have upgraded this enterprise software provider's shares to an add rating with an improved price target of $20.50. This follows the release of a solid half year result from the tech company earlier this week. Morgans notes that Technology One delivered on the market's expectations during the half. But the main highlight was its outlook. Looking ahead, the broker believes that Technology One's profit growth can accelerate to 15% to 20% per annum growth from 10% to 15% previously. This is being underpinned by the quality of its software, unique SaaS business model, and large market opportunity. The TechnologyOne share price is fetching $17.59 on Friday afternoon.
Xero Ltd (ASX: XRO)
Analysts at Goldman Sachs have retained their conviction buy rating on this cloud accounting platform provider's shares with an increased price target of $164.00. This follows the release of Xero's full year results, which revealed sales marginally ahead of expectations and earnings comfortably ahead of them. The broker was also pleased to see the Rule of 40 exceeded (41%) and record EBIT margins delivered as Xero benefits from strong revenue growth, cost controls, and much lower than expected capex. In response to the result, the broker has upgraded its earnings estimates through to FY 2026 and lifted its valuation accordingly. The Xero share price is currently trading at $131.30 this afternoon.
