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:
Image source: Getty Images
BHP Group Ltd (ASX: BHP)
According to a note out of Macquarie, its analysts have retained their outperform rating and $52.00 price target on this mining giant's shares. This follows the release of industry data which appears to indicate improving demand for iron ore. Outside this, BHP continues to be Macquarie's top pick among the major miners. It estimates that the company's shares are trading on a free cash flow yield in the high teens, which bodes well for dividends. The BHP share price is trading at $41.24 this afternoon.
Sonic Healthcare Limited (ASX: SHL)
A 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 $50.72. Morgans made the move after increasing its earnings estimates materially to reflect heightened COVID-19 testing demand and the acquisition of US-based anatomical pathology company Propath. The Sonic share price is fetching $45.22 on Wednesday.
Universal Store Holdings Ltd (ASX: UNI)
Analysts at UBS have initiated coverage on this fashion retailer's shares with a buy rating and $8.00 price target. According to the note, the broker believes Universal Store is well-placed for growth thanks to expansion opportunities and the superiority and pricing of its products. UBS also notes that its shares trade on attractive multiples given its outlook. The Universal Store share price is trading at $6.84 on Wednesday afternoon.
