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:
Altium Limited (ASX: ALU)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating but cut their price target on this electronic design software company’s shares to $35.00. Morgan Stanley believes that Altium could be benefiting from global supply chain difficulties and chip shortages. This is because it suspects that its software is experiencing high demand from designers repurposing chips and its Octopart search engine is being used to source parts. The Altium share price is trading at $28.55 on Wednesday.
BHP Group Ltd (ASX: BHP)
A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this mining giant’s shares to $50.00. Citi has been looking over BHP following the demerger of its petroleum business. It feels there could be opportunities to unlock further value with another demerger. This would see BHP split into Bulks and Metals (inc. potash). The BHP share price is fetching $45.65 today.
Wesfarmers Ltd (ASX: WES)
Analysts have retained their buy rating and $56.00 price target on this conglomerate’s shares. According to the note, the broker has been impressed with the company’s new $80 million Bunnings Pymble store. It believes this store’s unique design should be able to capitalise on the trade segment and extend its addressable market. And while changing purchasing patterns takes time, it feels that a larger presence in an attractive demographic is a good start. The Wesfarmers share price is trading at $47.58 on Wednesday afternoon.