Many of Australia's top brokers have been busy adjusting their financial models again, leading to the release of a 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:
Arafura Rare Earths Ltd (ASX: ARU)
According to a note out of Bell Potter, its analysts have retained their speculative buy rating and 72 cents price target on this rare earths developer's shares. This follows news that the company has signed a major offtake agreement with Siemens Gamesa Renewable Energy. The broker believes this is a milestone and supports its impending final investment decision on the Nolans project. The Arafura share price is trading at 49.7 cents on Wednesday.
Rio Tinto Ltd (ASX: RIO)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this mining giant's shares with a slightly trimmed price target of $138.30. The broker has been running the rule over the mining sector and continues to see Rio Tinto as one of the best options. This is due to its attractive valuation, strong free cash flow generation, and an expected operational turnaround in the Pilbara and copper. The Rio Tinto share price is fetching $121.41 this afternoon.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at Morgan Stanley have retained their overweight rating and $15.40 price target on this wine company's shares. The broker highlights that trade relations between Australia and China are improving. And while wine is not currently on the agenda, it sees scope for this to change in the future. This would be a major boost to the company's operations after being effectively shut out of China two and a half years ago. The Treasury Wine share price is trading at $14.01 today.
