It has been another busy week for Australia's top brokers. This has led to the release of a large 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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Lifestyle Communities Ltd (ASX: LIC)
According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating on this retirement property company's shares with an improved price target of $27.15. Goldman highlights that Lifestyle Communities has a highly valuable business model. It also believes that recent share price weakness has created a compelling entry point for investors. The Lifestyle Communities share price is trading at $15.35 on Friday.
Temple & Webster Group Ltd (ASX: TPW)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $5.60 price target on this online furniture retailer's shares. This follows news that the company is undertaking a $30 million on-market share buyback. Its analysts feel that this is a sign that its shares are undervalued at the current level. The Temple & Webster share price is fetching $3.30 this afternoon.
Xero Limited (ASX: XRO)
Analysts at Morgan Stanley have also retained their overweight rating on this cloud accounting platform provider's shares with an improved price target of $100.00. The broker has been pleased with Xero's plan to cut its workforce to improve profitability. In light of this and its belief that the market is undervaluing its growth potential, Morgan Stanley sees Xero as a top option in the tech sector right now. The Xero share price is trading at $88.93 today.
