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:
GUD Holdings Limited (ASX: GUD)
According to a note out of UBS, its analysts have retained their buy rating and lifted their price target on this diversified products company’s shares to $13.80. This follows the announcement of an agreement to acquire Auto Pacific Group for $745 million. UBS acknowledges that there are integrations risks to consider, particularly given how this is the second acquisition in the space of as many months. However, it believes the positives far outweigh the negatives and sees notable international growth opportunities from the deal. The GUD share price is trading at $11.14 today.
Qantas Airways Limited (ASX: QAN)
A note out of Ord Minnett reveals that its analysts have retained their buy rating and $6.50 price target on this airline operator’s shares. While the broker acknowledges that the Omicron variant is a risk to the international travel recovery, its analysts aren’t overly concerned. This is because they believe the domestic business will be key for Qantas. The Qantas share price is fetching $4.94 this afternoon.
South32 Ltd (ASX: S32)
Analysts at Macquarie have retained their outperform rating and lifted their price target on this mining giant’s shares to $5.00. According to the note, the broker is a fan of the company’s acquisition of an interest in the Sierra Gorda Copper Mine in Chile. Macquarie believes it is a strategic fit and gives South32 further exposure to the decarbonisation theme. Its analysts also expect the deal to boost the company’s earnings and have upgraded their estimates to reflect this. The South32 share price is trading at $3.67 on Wednesday.