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:
Catapult Sports Ltd (ASX: CAT)
According to a note out of Bell Potter, its analysts have retained their buy rating on this sports technology company's shares with a trimmed price target of $6.50. The broker highlights that Catapult released its half year results last week and delivered earnings ahead of both guidance and Bell Potter's expectations. It notes that this was driven by a higher than expected margin. Looking ahead, the broker sees potential for strong double-digit growth in the core business and believes it will be augmented by the cross-sell opportunities from the recent IMPECT acquisition, together with a potential expansion into other sports. And while the broker has reduced its valuation meaningfully, this is reflective of a change in multiples due to the recent de-rating of the tech sector. The Catapult share price ended the week at $4.51.
TechnologyOne Ltd (ASX: TNE)
A note out of Morgan Stanley reveals that its analysts have upgraded this enterprise software provider's shares to an overweight rating with an improved price target of $36.50. This followed the release of TechnologyOne's full year results last week. While the broker highlights that there has been a slight slowdown in its growth (outside the UK), it remains highly profitable and is generating significant cash flow. In light of this and its positive growth outlook and defensive earnings, Morgan Stanley thinks that recent share price weakness has created a very attractive entry point for investors. The TechnologyOne share price was fetching $29.53 at Friday's close.
Xero Ltd (ASX: XRO)
Analysts at Macquarie have retained their outperform rating on this cloud accounting platform provider's shares with an increased price target of $230.30. According to the note, Macquarie was pleased with Xero's performance in the first half of FY 2026. It points out that, despite what the market reaction might imply, there was nothing in the result that breaks its thesis. In fact, Macquarie believes that the US growth platform (Payments: Melio; Payroll: Gusto) is in place earlier than expected, and management is executing on its plans. Overall, the broker feels that Xero has a great growth story that is on sale and only needing a catalyst. And at 25x estimated FY 2027 earnings, its analysts think that Xero shares are undervalued and sees scope for big returns over the next 12 months. The Xero share price ended the week at $119.22.
