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:
BHP Group Ltd (ASX: BHP)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $47.10 price target on this mining giant's shares. Morgan Stanley notes that the Big Australian released its first quarter update last week and revealed a performance that was a touch ahead of expectations. This was particularly the case with the mining giant's copper and thermal coal volumes, which were better than it was forecasting. And although BHP's metallurgical coal operations fell short of estimates, Morgan Stanley isn't fazed by this and remains very positive. Overall, the broker continues to see a lot of value in the Big Australian's shares right now and is tipping them as a buy. The BHP share price ended the week at $42.06.
REA Group Ltd (ASX: REA)
Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating on this property listings company's shares with an improved price target of $250.00. The broker thinks that the market is underestimating REA Group's growth potential. It believes that the realestate.com.au operator is well-placed for growth thanks to increasing price and yields. Morgan Stanley also notes that last week's trading update from REA Group at its annual general meeting means that it is comfortably on course to achieve the market's expectations in FY 2025. In light of this, its analysts feel that now is a good time to buy the company's shares. The REA Group share price was fetching $223.81 at Friday's close.
Seek Ltd (ASX: SEK)
Analysts at Macquarie have retained their outperform rating on this job listings giant's shares with an improved price target of $28.00. According to the note, the broker highlights that Seek has made a $45 million non-binding takeover offer for human resources and recruitment technology company Xref Ltd (ASX: XF1). Macquarie appears to believe that this acquisition could be a good fit for Seek. This is because it thinks it could allow the company to command higher prices for its offering. Particularly given how adding the reference-checking technology to its platform could enhance the trust that Seek enjoys among its customers. The Seek share price ended the week at $24.96.
