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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:
According to a note out of Macquarie, its analysts have retained their outperform rating on this energy producer’s shares with a trimmed price target of $8.45. This follows news that Santos’ proposed takeover by the XRG consortium has collapsed. Macquarie thinks that the pullback in the Santos share price has created a buying opportunity for investors. In fact, its analysts note that they see extraordinary value for longer-term investors. They point out that Santos shares now imply a US$51 per barrel oil price, which is a significant discount to rival Woodside Energy Group Ltd (ASX: WDS) at US$60 per barrel and the forward curve of US$66 per barrel. Outside this, the broker believes its free cash flow growth outlook is very positive given its major capex is now out of the way. The Santos share price ended last week at $6.90.
Telix Pharmaceuticals Ltd (ASX: TLX)
A note out of Bell Potter revealed that its analysts have retained their buy rating and $23.00 price target on this radiopharmaceuticals company’s shares. Bell Potter was pleased to see that the company has been given some good news from US regulators after a series of blows from the US FDA. That news was that the US CMS has granted pass through pricing for Gozellix from 1 October. Bell Potter believes that the decision to pursue this strategy has proven to be a master stroke by the company. It also thinks that it has shown its major competitor in the PSMA imaging market is asleep at the wheel. In addition, Bell Potter continues to believe that the manufacturing matters blocking the approval of other products can be resolved expeditiously. The Telix share price was fetching $14.85 at Friday’s close.
Analysts at Citi have retained their buy rating and $210.00 price target on this cloud accounting platform provider’s shares. According to the note, Citi has attended the investor day event of Quickbooks owner Intuit (NASDAQ: INTU). It has seen positives from the event for Xero. This includes rival Intuit stressing how agentic AI will be a key growth driver in the future. Citi feels that this bodes well for the Just-Ask-Xero (JAX) offering and thinks that it could support improvements in its average revenue per user (ARPU) metric over the coming years. Outside this, another reason to be positive on Xero is its superior subscriber growth and stronger momentum in North America compared to its rival. The Xero share price ended the week at $158.24.