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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A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts have retained their buy rating and $7.04 price target on this infant formula company's shares. Citi highlights that the Chinese government is rumoured to be planning to launch a fresh round of stimulus to boost consumer spending. Part of this stimulus reportedly includes providing parents with more than one child an additional allowance. The broker suspects that this allowance could be the catalyst to improving China's birth rate, which would be a big positive for infant formula sellers in the lucrative market. The A2 Milk share price ended the week at $6.23.
REA Group Ltd (ASX: REA)
Another note out of Citi reveals that its analysts have retained their buy rating and $230.00 price target on this property listings company's shares. This follows news that the realestate.com.au operator has now withdrawn from its pursuit of UK peer Rightmove (LSE: RMV). Citi believes that the market will be pleased that no deal was agreed. Though, it isn't ruling out another tilt when rules allow in the future. But if it doesn't, it suspects that REA Group could pay shareholders a special dividend. Outside this, the broker is predicting that the company will deliver a strong trading update for the first quarter of FY 2025 next month. The REA Group share price was fetching $213.25 at Friday's close.
Woolworths Group Ltd (ASX: WOW)
Analysts at Goldman Sachs have retained their buy rating and $40.10 price target on this supermarket giant's shares. According to the note, the broker isn't concerned by the announcement of the ACCC's Supermarkets Inquiry interim report. Goldman notes that the report has not suggested any final recommendations but outlines a list of key issues that will be further investigated. However, the broker believes that none of the issues being investigated are a surprise. As a result, it continues to believe that risks to earnings and its valuation from the inquiries are sufficiently priced in. As a result, Goldman thinks that recent share price weakness has created a buying opportunity for investors. The Woolworths share price ended the week at $32.98.
