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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Aristocrat Leisure Ltd (ASX: ALL)
According to a note out of Bell Potter, its analysts have retained their buy rating and $79.00 price target on this gaming technology company's shares. The broker highlights that industry data shows that Aristocrat has been performing strongly recently. It points out that there has been strong uptake for its Phoenix Link game, which is performing at an impressive 2.4x floor average. In addition, the 8-year-old Dragon Link game continues to deliver for the company. It was one of the fastest growing games during the last month with 165 net adds, performing at an industry leading 3.0x floor average. Combined with its R&D investment, the broker believes that this leaves the company well-positioned to drive share gains in each of the markets it operates in. The Aristocrat share price ended the week at $64.36.
Seek Ltd (ASX: SEK)
Another note out of Bell Potter reveals that its analysts have retained their buy rating on this job listings company's shares with an improved price target of $28.40. The broker believes that Seek's Australian marketplace could see advertisement volumes increase from macro tailwinds driven by an RBA cutting cycle. It also notes that there is scope for Seek to deliver group yield and margin improvements through its unified platform. And while the broker concedes that there could be near term share price volatility from its sensitivity to economic indicators impacting the outlook for jobs growth and ad volumes on platform, it thinks it is worth sticking with Seek. So much so, Seek is now its preferred Australian classifieds exposure. The Seek share price was fetching $24.35 at Friday's close.
Xero Ltd (ASX: XRO)
Analysts at Morgans have retained their accumulate rating and $215.00 price target on this cloud accounting platform provider's shares. This follows news that Xero is acquiring North American digital payments business, Melio, for US$2.5 billion. While the broker concedes that the loss-making Melio will be dilutive in the short term, it thinks it could fast track its US expansion. This is because the acquisition brings product innovation and makes Xero's North American product more compelling due to combining digital payments and accounting. All in all, Morgans believes that the acquisition moves Xero closer to being a scale player with critical mass in the North American market. The Xero share price ended the week at $182.99.
