Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:
Appen Ltd (ASX: APX)
According to a note out of Citi, its analysts have retained their buy rating and $17.10 price target on this artificial intelligence data services company’s shares. The broker believes that the company’s outlook is improving thanks to news that Facebook is increasing its capital expenditure by 70%. Particularly given how the social media giant highlighted artificial intelligence and machine learning spending as being a key driver in this increase. The Appen share price is trading at $10.62 today.
Mineral Resources Limited (ASX: MIN)
Another note out of Citi reveals that its analysts have retained their buy rating but trimmed their price target on this mining and mining services company’s shares to $55.00. This follows the release of the company’s quarterly update this week. And while that update revealed a sharp drop in the price it is commanding for iron ore, the broker feels that recent policy changes in China will put a floor on iron ore prices now. In addition, Citi expects the company’s lithium earnings contribution to recover in the next 12 months. This is on the back of better pricing for Mt Marion spodumene and the Wodgina mine restart. The Mineral Resources share price is fetching $38.71 today.
Pilbara Minerals Ltd (ASX: PLS)
Analysts at Macquarie have retained their outperform rating and $2.80 price target on this lithium miner’s shares. This follows the announcement of a joint venture with Korean giant POSCO. That joint venture will construct a 43,000tpa lithium hydroxide facility in South Korea. Macquarie believes this is a positive and expects it to underpin the expansion of the Pilgangoora operation. The Pilbara Minerals share price is trading at $2.21 today.