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:
Harvey Norman Holdings Limited (ASX: HVN)
According to a note out of Bell Potter, its analysts have initiated coverage on this retail giant's shares with a buy rating and $5.80 price target. The broker likes Harvey Norman due to its unique characteristics as an integrated retailer and property owner with a leading competitive advantage as a franchisor/retailer. In addition, it believes that the introduction of artificial intelligence (AI) features into mobile phone and personal computers could underpin a major upgrade cycle of consumer electronics. The Harvey Norman share price is trading at $4.91 on Friday.
Premier Investments Limited (ASX: PMV)
Another note out of Bell Potter reveals that its analysts have retained their buy rating on this retail conglomerate's shares with a trimmed price target of $34.00. This follows the release of a full year result that was a touch on the mixed side. While the broker has reduced its earnings estimates and valuation to reflect this, it remains very bullish. Bell Potter is positive on its plan to merge its Apparel Brands business with Myer Holdings Ltd (ASX: MYR) and believes it could drive a re-rating of its shares. Especially given its estimated FY 2026 earnings multiple of 16x, which it feels is attractive given upcoming catalysts and its strong balance sheet. The Premier Investments share price is fetching $30.49 at the time of writing.
Xero Ltd (ASX: XRO)
Analysts at Goldman Sachs have reiterated their conviction buy rating on this cloud accounting platform provider's shares with an improved price target of $201.00. According to the note, the broker has been looking at Xero's opportunity in the United States. It feels things are looking very positive for the company in the massive market. This is partly due to Xero's US product cadence accelerating, with significant progress on localisation. This includes a change in approach to bank reconciliation, which is important because it is reportedly the number one objection to adopting Xero from accountants. All in all, Goldman believes Xero is well-placed for strong growth in the coming years and sees plenty of value in its shares at current levels. The Xero share price is trading at $148.38 today.
