It was another busy week for Australia's top brokers. This has led to a number of broker notes being released.
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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CSL Ltd (ASX: CSL)
According to a note out of Morgans, its analysts have retained their buy rating on this biotech giant's shares with a reduced price target of $147.59. Morgans notes that CSL has downgraded its guidance for FY 2026 due to China Albumin price pressure, US immunoglobulin channel inventory normalisation, and other impacts. While this is disappointing, the broker highlights that the issues are being framed as primarily executional rather than structural, with infrastructure overbuild, organisational complexity, and weak commercial execution cited. In light of this and with underlying demand and industry structure remaining healthy, Morgans thinks it is worth sticking with CSL and sees significant value in its shares at current levels. The CSL share price ended the week at $97.96.
REA Group Ltd (ASX: REA)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this property listings company's shares with an increased price target of $217.00. Bell Potter was pleased with REA Group's performance in the third quarter, noting that it delivered a resilient result. This was thanks largely to strong performances in the key Melbourne and Sydney markets. And while Bell Potter recognises the potential for disruption, it believes the earnings multiple compression is overdone. This is especially the case considering that REA Group's moat lies in decades of property, customer and buyer intent data, as well as an inherent network effect via an established and highly engaged audience. The REA Group share price was fetching $162.01 at Friday's close.
Xero Ltd (ASX: XRO)
Analysts at Macquarie have retained their buy rating on this cloud accounting platform provider's shares with an improved price target of $235.80. According to the note, the broker thought Xero's performance in FY 2026 was strong and was pleased with its accelerating growth in the key US market. Looking ahead, Macquarie sees potential for significant operating leverage as revenue scales across a largely fixed cost base. And while AI disruption concerns are lingering, the broker believes Xero's proprietary customer data and ecosystem integration positions it well for the future. The Xero share price ended the week at $79.67.
