It was 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:
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CSL Ltd (ASX: CSL)
According to a note out of Macquarie, its analysts have retained their outperform rating and $330.00 price target on this biotechnology company's shares. Macquarie has been busy running the rule over the company's garadacimab product, which is a potential treatment of hereditary angioedema. Macquarie suspects that garadacimab could be approved by regulators later this year and start contributing revenue from next year. And given how its efficacy is much stronger than what is already on the market, the broker feels that it could drive market share gains and be supportive of CSL's earnings growth over the medium term. The CSL share price ended the week at $300.26.
REA Group Ltd (ASX: REA)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this property listings company's shares with an improved price target of $226.00. The broker has been looking into REA Group's proposed acquisition of UK-based Rightmove (LSE: RMV). It notes that using expensive REA Group equity to purchase cheap Rightmove equity (both compared to long term averages) is logical at a headline level. And based on an estimated 30% takeover premium and the realisation of 5% net synergies, Bell Potter believes the deal would be 12% earnings per share accretive by FY 2026. It also recognises potential to further leverage a significant equity base to create a diversified global property listings network. The REA Group share price was fetching $199.70 at Friday's close.
Xero Ltd (ASX: XRO)
Another note out of Macquarie reveals that its analysts have retained their outperform rating and $184.40 price target on this cloud accounting platform provider's shares. Macquarie has picked out Xero as its preferred pick in the Australian technology sector. This is due to its belief that its shares are undervalued based on its growth potential. The broker believes that Xero's margin expansion potential is being underestimated by the market. It estimates that its shares are pricing in recurring revenue growth of just 11%. Whereas Macquarie feels stronger growth can be achieved. As a result, it feels that now could be a good time to snap up its shares. The Xero share price ended the week at $142.10.
