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:
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BHP Group Ltd (ASX: BHP)
According to a note out of Morgans, its analysts have retained their add rating on this mining giant's shares with a slightly trimmed price target of $50.40. While BHP's third-quarter update was short of consensus estimates, it was in-line with what Morgans was expecting. In light of this, the broker believes that investors should be taking advantage of any share price weakness to accumulate shares. The BHP share price is trading at $43.68 on Wednesday.
Telstra Group Ltd (ASX: TLS)
Analysts at Goldman Sachs have reiterated their buy rating on this telco giant's shares with an improved price target of $4.70. According to the note, the broker has boosted its earnings estimates to reflect larger than expected mobile price increases. Goldman expects prices to increase by $4-6 per month now, compared to its previous forecast of a $2-3 per month lift. The Telstra share price is fetching $4.31 today.
Xero Limited (ASX: XRO)
A note out of UBS reveals that its analysts have upgraded this cloud accounting company's shares to a buy rating with an improved price target of $109.00. UBS believes that Xero is well-placed to deliver stronger than expected free cash flow in the coming years. Particularly given its belief that its strong growth will continue despite its recent cost reductions initiative. The Xero share price is trading at $93.50 this afternoon.
