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:
ARB Corporation Limited (ASX: ARB)
According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this 4×4 parts manufacturer's shares to $57.00. This follows the release of its first half trading update which outperformed Citi's estimates. Looking ahead, the broker is positive on ARB's medium term outlook. It notes that the company has significant medium-term growth drivers including its partnership with Ford, distribution gain opportunities in the US, and opportunities to expand in Europe. The ARB share price is trading at $46.86 this afternoon.
ELMO Software Ltd (ASX: ELO)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $7.80 price target on this HR technology company's shares. This follows the release of a first half trading update which revealed a strong rebound in demand for its offering. In addition, the broker was pleased to see ELMO's cash burn reduce and its recurring revenue guidance increased. The ELMO share price is fetching $4.19 today.
Pilbara Minerals Ltd (ASX: PLS)
Analysts at Macquarie have retained their outperform rating and $3.70 price target on this lithium miner's shares. Pilbara Minerals fell short of Macquarie's production expectations during the second quarter due largely to labour shortages. As a result, it suspects a guidance downgrade is coming with its half year results. However, this is only expected to be temporary. Furthermore, offsetting this bad news was higher lithium price expectations for the second half. The Pilbara Minerals share price is trading at $3.41 today.
