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:
Accent Group Ltd (ASX: AX1)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating but slashed their price target on this footwear retailer’s shares to $1.65. Morgan Stanley has been looking at a number of companies and the impact that rising interest rates and inflation will have on them. While the broker believes Accent will be vulnerable to softening consumer spending, it remains positive enough to keep its overweight rating. This is due to Accent’s store rollout plans and exposure to structural growth markets. The Accent share price is trading at $1.21 this afternoon.
Collins Foods Ltd (ASX: CKF)
A note out of Morgans reveals that its analysts have upgraded this quick service restaurant operator’s shares to an add rating with a reduced price target of $11.50. This follows a full year result the broker described as a “zinger.” While the broker expects inflationary pressures to weigh on its near term margins, it remains positive on Collins Foods’ outlook. This is due to its belief that consumer demand for its KFC restaurants will remain resilient. It also notes that the company has a degree of pricing power that could help mitigate inflation. The Collins Foods share price is fetching $9.98 on Wednesday.
Evolution Mining Ltd (ASX: EVN)
Another note out of Morgans reveals that its analysts have upgraded this gold miner’s shares to an add rating with a $3.23 price target. Although the broker was disappointed with Evolution’s FY 2022 guidance downgrade, it feels the market has overreacted. In light of this, it believes a buying opportunity has opened up for investors that are looking for exposure to the gold industry. The Evolution share price is trading at $2.41 today.