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:
Collins Foods Ltd (ASX: CKF)
According to a note out of Morgans, its analysts have retained their add rating but slashed their price target on this quick service restaurant operator's shares to $9.50. This follows the release of the company's half year result on Tuesday. While the broker wasn't overly surprised by its first half performance, it was by the suggestion that Collins Foods' margins may not recover in the second half as previously expected. Nevertheless, with its shares crashing following the release, the broker believes all this and more is now factored into its valuation. The Collins Foods share price is trading at $7.78 this afternoon.
Life360 Inc (ASX: 360)
A note out of Bell Potter reveals that its analysts have retained their buy rating and $9.00 price target on this location technology company's shares. This follows the recent completion of a capital raising. Bell Potter doesn't believe these funds will be used for increased investments. Instead, it feels the funds are there to provide a buffer so that its cash balance does not drop below US$50 million before it starts generating positive free cash flow in Q3 or Q4 of next year. Outside this, Bell Potter continues to believe that Life360 will deliver on its guidance in FY 2022. The Life360 share price is fetching $6.29 on Wednesday.
Wesfarmers Ltd (ASX: WES)
Analysts at UBS have retained their buy rating on this conglomerate's shares with an improved price target of $56.00. According to the note, the broker continues to believe that Wesfarmers' retail businesses are well-placed in the current environment due to their value offering. In fact, it suspects the company's Bunnings and Kmart businesses could increase their market share. The Wesfarmers share price is trading at $48.66 today.
