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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Adairs Ltd (ASX: ADH)
According to a note out of UBS, its analysts have retained their buy rating but trimmed their price target on this homewares retailer's shares to $3.40. UBS notes that Adairs' performance in FY 2022 fell short of expectations due largely to a disappointing second half from its Mocka brand. However, with its shares falling heavily post-results, the broker sees enough value on offer here to retain its buy rating on the company's shares. The Adairs share price is trading at $2.20 this afternoon.
Nick Scali Limited (ASX: NCK)
Analysts at Citi have retained their buy rating and lifted the price target on this furniture retailer's shares to $14.62. This follows the release of a full year result which came in ahead of both the market consensus and Citi's expectations. In addition, the broker was pleased to see that Nick Scali has started the new financial year in a positive fashion. This has led to Citi lifting its earnings estimates meaningfully. The Nick Scali share price is fetching $11.04 today.
Pilbara Minerals Ltd (ASX: PLS)
A note out of Macquarie reveals that its analysts have retained their outperform rating and $5.60 price target on this lithium miner's shares. Although Pilbara Minerals delivered a softer than expected full year result that missed the broker's estimates, it isn't concerned. That's because thanks to its strong production guidance and booming lithium prices, the broker suspects the Pilbara Minerals could triple its profits in FY 2023. The Pilbara Minerals share price is trading at $3.47 on Wednesday.
