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:
BHP Group Ltd (ASX: BHP)
According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this mining giant’s shares to $45.70. This follows the announcement of a binding agreement to merge its petroleum assets with Woodside Petroleum Limited (ASX: WPL). As well as being positive on the merger, Morgans likes BHP due to its attractive combination of upside sensitivity, balance sheet strength, and resilient dividend profile. The BHP share price is trading at $38.49 this afternoon.
Life360 Inc (ASX: 360)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and increased their price target on this app maker’s shares to $16.50. The broker notes that Life360 is acquiring personal items tracking company Tile for US$205 million (A$282.8 million). The broker is positive on the deal and expects to widen its target market and offer further upsell opportunities. The Life360 share price was fetching $13.51 prior to its trading halt.
Sonic Healthcare Limited (ASX: SHL)
Another note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this healthcare company’s shares to $47.05. This follows the recent release of a solid trading update for the first four months of FY 2022. In addition, the broker sees upside risk to COVID-19 testing demand in the northern hemisphere during the winter period. This could be a big positive for Sonic’s pathology operations. The Sonic share price is trading at $41.39 on Wednesday afternoon.