Top brokers name 3 ASX shares to buy next week

With most brokers taking a break over the Christmas and New Year holiday period, research notes are few and far between right now.

But don't worry! Listed below are three recent broker buy recommendations that still have plenty of upside potential.

Here's why brokers think these ASX shares are in the buy zone:

ResMed Inc. (ASX: RMD)

According to a note out of Ord Minnett, its analysts retained their buy rating and $48.80 price target on this sleep treatment disorder company's shares. This followed the release of ResMed's first quarter update which impressed the broker. Ord Minnett noted that its mask sales were strong and its focus on cost savings resulted in gross margin improvements ahead of consensus estimates. In response to the update, the broker increased its earnings per share estimates for FY 2026 and FY 2027. It now expects double-digit earnings per share growth for both years. And given ResMed's growing cash balance, the broker highlights that ResMed has capital management optionality. The ResMed share price ended the week at $36.22.

TechnologyOne Ltd (ASX: TNE)

A note out of Morgan Stanley revealed that its analysts upgraded this enterprise software provider's shares to an overweight rating with an increased price target of $36.50. This followed the release of the company's full year results and a selloff that ensued. Although Morgan Stanley acknowledged that there was a slight slowdown in TechnologyOne's growth outside the UK market, it continued to be highly profitable and generate significant free cash flow. As a result of this, its positive growth outlook, and defensive earnings, Morgan Stanley felt that an attractive entry point was created for investors. The TechnologyOne share price was fetching $28.56 at the Christmas break.

Xero Ltd (ASX: XRO)

Analysts at Macquarie retained their outperform rating on this cloud accounting platform provider's shares with an increased price target of $230.30. According to the note, the broker was pleased with Xero's performance in the first half of FY 2026. It highlighted that there was nothing in Xero's result that breaks its thesis, despite what the market reaction to its release might have implied. In fact, Macquarie stated that it believes the US growth platform (Payments: Melio; Payroll: Gusto) is in place earlier than expected and management is executing. Overall, it feels that Xero has a great growth story that is on sale and only needing a catalyst. And at under 25x estimated FY 2027 earnings, the broker thinks that Xero shares are undervalued and sees scope for big returns over the next 12 months. The Xero share price ended the week at $112.78.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in ResMed, Technology One, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, ResMed, Technology One, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group, ResMed, and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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