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:
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Accent Group Ltd (ASX: AX1)
According to a note out of Citi, its analysts have retained their buy rating and $2.61 price target on this footwear focused retailer's shares. The broker has been looking into the rollout of Sports Direct in the Australia and New Zealand region. It estimates that it could add over $50 million to Accent's EBITDA if it reaches 100 stores over the next eight years. This is almost 20% of the EBITDA of $293.7 million it recorded in FY 2024. Citi feels that this could be bad news for Super Retail Group Ltd (ASX: SUL), which owns the Rebel brand. The Accent share price is trading at $1.95 on Friday.
Aristocrat Leisure Ltd (ASX: ALL)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this gaming technology company's shares with a trimmed price target of $79.00. The broker remains positive on Aristocrat despite the release of a softer than expected half year result earlier this week. While it expects consensus downgrades to roll through following the result, it believes most of the factors driving the earnings miss are isolated to the first half. As a result, it thinks that Aristocrat is well placed to deliver a strong second half result. It also continues to expect the company's leading R&D investment to drive share gains in each of the markets it operates in. An example of this is its Phoenix Link game, which is growing at record levels. The Aristocrat share price is fetching $62.57 at the time of writing.
Xero Ltd (ASX: XRO)
Analysts at Morgans have upgraded this cloud accounting platform provider's shares to an add rating with an improved price target of $215.00. According to the note, the broker was pleased with Xero's full year results this week. It points out that its result and outlook commentary were largely in line with its expectations. But the main highlights were its strong performance in the United States, improved sales traction, and tight cost management. The broker feels these are supportive of accelerated investment in growth. The Xero share price is trading at $182.32 on Friday afternoon.
