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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Life360 Inc (ASX: 360)
According to a note out of Bell Potter, its analysts have retained their buy rating on this location technology company's shares with an improved price target of $52.50. Bell Potter was pleased with Life360's quarterly update last week, highlighting that revenue and earnings were comfortably ahead of expectations. And while the company's monthly active users (MAU) were softer than expected, Bell Potter points out that this was due to an intentional shift in marketing. Management is focusing paid media on users who are more likely to retain and convert. In response, Bell Potter has lifted its earnings estimates through to 2028 and increased its valuation accordingly. Overall, the broker thinks that weakness caused by the MAU miss has created a buying opportunity for investors. The Life360 share price ended the week at $37.12.
REA Group Ltd (ASX: REA)
Another 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. Bell Potter notes that the realestate.com.au operator released a mixed quarterly update last week. It highlights that its listing volumes were lower than expected, but this was offset by 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. The REA Group share price was fetching $200.99 at Friday's close.
Xero Ltd (ASX: XRO)
Analysts at Morgan Stanley have retained their overweight rating on this cloud accounting platform provider's shares with a trimmed price target of $225.00. According to the note, Morgan Stanley was pleased with Xero's performance during the first half of FY 2026. And although its revenue was slightly weaker than expected, its earnings and free cash flow were ahead of estimates. Outside this, it notes that the market remains sceptical on the Melio acquisition. However, Morgan Stanley is positive and thinks it will prove strategically valuable for its US business. As a result, it remains confident in its growth outlook. The Xero share price ended the week at $122.36.
