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:
Allkem Ltd (ASX: AKE)
According to a note out of Macquarie, its analysts have retained their outperform rating and lifted their price target on this lithium miner's shares to $21.00. Macquarie has upgraded its earnings estimates for Allkem and other lithium shares to reflect its stronger lithium price forecasts. This is being driven by growing demand for the battery making ingredient. The Allkem share price is trading at $15.89 on Wednesday.
Block Inc (ASX: SQ2)
Another note out of Macquarie reveals that its analysts have upgraded this payments giant's shares to an outperform rating with an improved price target to $145.00. Macquarie was pleased with Block's quarterly update and particularly the performance of its Cash App business. In light of this and recent share price weakness, the broker has upgraded Block's shares to an outperform rating. The Block share price is fetching $96.23 this afternoon.
Santos Ltd (ASX: STO)
Analysts at Morgans have retained their add rating but trimmed their price target on this energy producer's shares to $9.00. This follows the release of the company's investor day briefing on Tuesday. The broker was disappointed with the update and notes that Santos' 2023 guidance for production and capex fell short of both Morgans and consensus estimates. Nevertheless, the broker remains positive and highlights that this does not materially impact investment views or have a lasting impact. The Santos share price is trading at $7.58 on Wednesday afternoon.
