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:
Ansell Limited (ASX: ANN)
According to a note out of Citi, its analysts have retained their buy rating and $36.50 price target on this health and safety products company's shares. While Citi acknowledges that Ansell's earnings will fall heavily in FY 2022 due to easing COVID tailwinds, it feels that its shares have overcorrected. So with the company's shares now trading at under 15x FY 2023 earnings, the broker believes this has created a buying opportunity for investors. The Ansell share price is trading at $25.15 this afternoon.
Breville Group Ltd (ASX: BRG)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $36.00 price target on this appliance manufacturer's shares. Morgan Stanley notes that Breville's shares have pulled back meaningfully since the release of its half year results. This is despite the company delivering stellar growth during the half. Morgan Stanley sees this as a buying opportunity, particularly given Breville's global expansion. The broker expects this to support its growth as industry tailwinds fade. The Breville share price is fetching $26.21 today.
Sonic Healthcare Limited (ASX: SHL)
Analysts at Ord Minnett have upgraded this healthcare company's shares to a buy rating with a $37.30 price target. According to the note, the broker made the move on valuation grounds following recent weakness in its share price. And while the broker accepts that COVID testing volumes are likely to reduce and impact Sonic's earnings, Ord Minnett expects a recovery in its core diagnostic operations to offset some of this. In addition, it highlights its strong balance sheet which gives the company M&A optionality. The Sonic share price is trading at $32.95 on Wednesday afternoon.
