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:
IDP Education Ltd (ASX: IEL)
According to a note out of Goldman Sachs, its analysts have retained their buy rating on this language testing and student placement company's shares with a trimmed price target of $21.75. Goldman notes that IDP Education released a market update last week which revealed that it is being negatively impacted by a more restrictive policy environment in its key destination countries. While the broker acknowledges that the trading update was soft, it believes it should help investors better frame the earnings base for FY 2025. And with Goldman forecasting IDP Education's earnings to rebound in FY 2026, its analysts think that now could be a good time for patient investors to snap up its shares. The IDP Education share price ended Friday's session at $15.33.
Lovisa Holdings Ltd (ASX: LOV)
A note out of Bell Potter reveals that its analysts have retained their buy rating and $36.00 price target on this fashion jewellery retailer's shares. Bell Potter notes that Lovisa has announced that its highly regarded CEO, Victor Herrero, will be leaving next year. While the broker sees some leadership transition risk, it was pleased with his replacement John Cheston, who is the current CEO of Smiggle. It believes the new CEO appointment aligns well to drive the next leg of growth and lift the penetration of a global business built by Herrero. In addition, its analysts anticipate a smooth transition over the next 12 months and expect Cheston's background to assist continued execution in Lovisa's ~40 markets globally. The Lovisa share price was fetching $31.25 at Friday's close.
Xero Ltd (ASX: XRO)
Analysts at Macquarie have retained their outperform rating and $180.70 price target on this cloud accounting platform provider's shares. Macquarie notes that Xero has announced price increases and plan updates in the United Kingdom that will take place in September. The broker was pleased with the changes, which are mirroring those undertaken in the Australia market recently. Macquarie believes the new plans will support a higher average revenue per user metric in the UK market through the simplification of its offering and increased bundling. The Xero share price ended the week at $129.29.
