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:
Breville Group Ltd (ASX: BRG)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating but cut their price target on this appliance manufacturer’s shares to $25.00. While the broker has reduced its earnings estimates to reflect a challenging macroeconomic environment and potential impacts to demand, it sees enough value in its shares to maintain its positive view on the company. The Breville share price is trading at $17.43 today.
REA Group Limited (ASX: REA)
A note out of Citi reveals that its analysts have retained their buy rating and $153.50 price target on this property listings company’s shares. This follows news that New South Wales is making changes to stamp duty rules. Citi sees the changes as a positive and suspects that other states could follow its lead. The REA share price is fetching $101.01 this afternoon.
Readytech Holdings Ltd (ASX: RDY)
Analysts at Goldman Sachs have reinstated coverage on this enterprise software company’s shares with a buy rating and $4.60 price target. Goldman notes that Readytech has defensive qualities, which could be important if Australia falls into a recession. This is because it serves defensive end markets (e.g. higher education, local government) and has high recurring revenue. In addition, with its shares down materially this year, Goldman sees now as an opportune time to invest. The Readytech share price is trading at $2.79 on Wednesday.