2 ASX shares highly recommended to buy: Experts

When one expert thinks an ASX share is a buy, that's interesting. When numerous analysts think a business is a buy, that could be a clear indication that the business is a potential opportunity.

I'm going to talk about a couple of businesses that are some of the most highly-rated ASX shares on the Australian stock exchange.

Time will tell whether they're able to live up to the hype of analysts, but there are promising signs.

Telix Pharmaceuticals Ltd (ASX: TLX)

According to a Commsec collation of analyst ratings on this business, there are currently 16 buy ratings.

Broker UBS is one that rates Telix as a buy. It describes the business as an Australian biotechnology company that's engaged in developing and commercialising radiopharmaceuticals – drugs which are conjugated to molecules that are radioactive or will undergo radioactive decay.

UBS has a price target of $31 on the company, suggesting a possible rise of close to 200% within the next year.

The broker noted that the 2025 fourth-quarter group revenue was $208 million, an increase of 1% year-over-year, below UBS's estimate of $219 million.

While that was below expectations, UBS said it was encouraged by the continued volume growth and the average sales price (ASP) growth in the fourth quarter, likely indicating continued Illuccix and Gozellix (Telix products) continued penetration in outpatient hospitals.

UBS suggested that the ASX share's high-quality customer services is well-liked by radiologists, making Illuccix and Gozellix "sticky".

UBS concluded:

We believe the stock was under pressure due to 2 CRLs, PSMA diagnostics pricing headwind, TLX591 data delays, and SEC investigations. We believe these overhangs should start to resolve in 2026, starting with Pixclara resubmission and TLX591 Part 1 data in the upcoming weeks.

Importantly, FY26 guidance in the upcoming weeks should set a tone on Gozellix growth expectations in 2026 and we estimate Illuccix/Gozellix to achieve $776M sales in 2026 (24% y/y growth). Overall, we model PSMA diagnostics franchise alone would be worth $16.6/share. We see the current stock price as undervalued fundamentally.

Xero Ltd (ASX: XRO)

Cloud accounting software provider Xero is another very popular ASX share with analysts. According to the Commsec collation of analyst opinions on the business, there are currently 12 buy ratings on the company.

UBS is one of the brokers that rates Xero as a buy, with a price target of $194. That implies the company could more than double within the next 12 months.

The broker noted that the decline of the Xero share price of around 50% since June 2025 is because of AI concerns, the Melio acquisition and US profitability.

UBS thinks the market isn't pricing in any value for Melio (which cost $4 billion) nor the majority of its international segment.

The broker thinks there could be improving losses at Melio, accelerating core accounting growth in Australia and the UK, and cross-selling benefits in the US.

UBS suggests the Melio operating loss (EBITDA) will narrow "meaningfully" in FY27 and break even in FY30.

The broker also believes that Xero's core accounting (including the US) can grow revenue at a compound annual growth rate (CAGR) of 17% over the next three years, with stronger operating profit growth thanks to price rises and general scale, particularly thanks to subscriber momentum in Australia and the UK.

UBS estimates that by FY30 the company could generate NZ$928 million of annual net profit.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026