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:
Megaport Ltd (ASX: MP1)
According to a note out of Goldman Sachs, its analysts have retained their buy rating and $12.00 price target on this network as a service provider's shares. The broker notes that the company's management team appeared at a conference this week and it was pleased with what it heard. This includes Megaport experiencing a significant uptick in GPUaaS operators coming to market and driving demand for high levels of capacity and services within existing data centres. It highlights that Latitude.sh is an example of a GPU farm that is operating in 18+ Megaport locations, currently driving increased demand for connectivity. Combined with increasingly complex cloud environment and connectivity demands, Goldman feels the future is bright for the company. The Megaport share price is trading at $7.77 on Friday.
Tyro Payments Ltd (ASX: TYR)
A note out of Jefferies reveals that its analysts have retained their buy rating on this payments provider's shares with an improved price target of $1.70. The broker has been looking at its estimates for the coming years and has lifted its earnings expectations nicely to account for lower than previously expected expenses. In light of this, Jefferies sees a lot of value in Tyro's shares and thinks investors should be snapping them up right now before it is too late. The Tyro Payments share price is fetching $1.05.
Xero Ltd (ASX: XRO)
Analysts at Macquarie have retained their outperform rating and $184.40 price target on this cloud accounting platform provider's shares. According to the note, the broker has named Xero as its preferred pick in the Australian technology sector. Particularly given its belief that the market is underestimating the company's margin expansion potential. Macquarie is more positive than the consensus and highlights Xero's record of growing recurring revenue by 20%. However, it estimates that its share price is pricing in recurring revenue growth of just 11%. As a result, it feels now could be a good time to snap up its shares before a potential re-rating higher takes place. The Xero share price is trading at $143.13 at the time of writing.
