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:
REA Group Ltd (ASX: REA)
According to a note out of Citi, its analysts have upgraded this property company's shares to a buy rating with an improved price target of $221.00. The broker highlights that the company has a dominant position in the largest real estate markets and is able to invest heavily in its products and technology. Citi expects the latter to help underpin strong earnings growth over the medium-to-long term. In addition, it sees potential upside from stronger than expected monetisation of seller and mortgage leads and margin support from its flexible cost base. Overall, the broker is expecting this to lead to earnings ahead of consensus estimates in FY 2025 and FY 2026. The REA Group share price is trading at $194.87 today.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of Goldman Sachs reveals that its analysts have reiterated their buy rating on this wine giant's shares with an improved price target of $15.20. The broker was pleased with the company's Penfolds update this week. And while it acknowledges that its FY 2025 Penfolds EBITS guidance was ~3.5% below consensus estimates, it believes investors should focus more on the medium term. It highlights that its ~15% CAGR in FY 2026 and FY 2027 EBITS excluding any price increases is strong. It also demonstrates management's confidence in its execution despite the highly volatile consumer environment. All in all, the broker believes that the building blocks of its EBITS growth to FY 2027 is balanced and of high quality. The Treasury Wine share price is fetching $12.57 on Friday.
Woolworths Group Ltd (ASX: WOW)
Analysts at Morgan Stanley have upgraded this supermarket giant's shares to an overweight rating with an improved price target of $37.00. This follows the release of the results of a major household survey which has made the broker more positive on the supermarket industry. It feels that the survey points to consumer trends that will result in better than expected same store sales in FY 2025. In addition, Morgan Stanley believes the results point to Woolworths being the biggest winner from these trends. As a result, it has elevated the company to be its top industry pick. The Woolworths share price is trading at $33.63 this afternoon.
