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:
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BHP Group Ltd (ASX: BHP)
According to a note out of Citi, its analysts have retained their buy rating but trimmed their price target on this mining giant's shares to $44.50. This follows the release of the Big Australian's quarterly update. While Citi was pleased with BHP's performance, its guidance was weaker than expected. This has led to the broker downgrading its earnings estimates. Nevertheless, with the broker expecting a 10% dividend yield in FY 2023 and an 8% yield in FY 2024, it remains positive on the investment opportunity here. The BHP share price is trading at $37.14 today.
JB Hi-Fi Limited (ASX: JBH)
Another note out of Citi reveals that its analysts have upgraded this retail giant's shares to a buy rating with a $47.00 price target. This follows the release of a trading update which revealed a much stronger than expected performance during the fourth quarter. Citi believes this supports its view that household spending will hold up despite rising inflation. So, with its shares underperforming significantly since May and the discretionary sector unloved, the broker now views the risk/reward as favourable. The JB Hi-Fi share price is fetching $43.73 today.
Rio Tinto Limited (ASX: RIO)
Analysts at Morgans have upgraded this mining giant's shares to an add rating with a $113.00 price target. According to the note, the broker believes that recent weakness has created a buying opportunity for investors. Particularly given its view that current volatility will moderate later this year as growth in China starts to recover post lockdowns. The Rio Tinto share price is trading at $97.89 on Wednesday.
