With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.
Three top ASX shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:
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Qantas Airways Ltd (ASX: QAN)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $13.40 price target on this airline operator's shares. This follows the release of the airline operator's annual general meeting update. While there have been some minor adjustments to its revenue per available seat kilometre (RASK), the broker was pleased to see its loyalty guidance remain unchanged. Overall, it appears happy with what it saw and continues to forecast a strong result in FY 2026. The Qantas share price is trading at $9.64 on Monday afternoon.
REA Group Ltd (ASX: REA)
A note out of Bell Potter reveals that its analysts have retained their outperform rating and $244.00 price target on this property listings company's shares. This follows the release of a mixed quarterly update from the realestate.com.au operator. Bell Potter notes that volumes were lower than expected, but this was offset with stronger than expected yields. Outside this, its analysts highlight that REA Group's strong free cash flow profile allows for sustained platform reinvestment to target double-digit yield growth through the cycle. This includes a next-gen listings platform to drive customer experience and higher quality leads to vendors/value to agents. They also point out that REA Group commands a significant balance sheet and equity firepower to make accretive acquisitions globally. The REA Group share price is fetching $209.75 at the time of writing.
Xero Ltd (ASX: XRO)
Analysts at Macquarie have retained their outperform rating on this cloud accounting platform provider's shares with an improved price target of $228.90. According to the note, the broker believes that Xero is well-placed to become the number two player in the United States. It highlights that the company's aggressive push coincides with its main rival's focus on growing its ARPU. In addition, Macquarie believes that the market is currently pricing in a miss to the Rule of 40 and isn't pricing any upside from the Melio acquisition. Overall, the broker has a high conviction in Xero's >12- month story. The Xero share price is trading at $141.88 this afternoon.
