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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CSL Limited (ASX: CSL)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $339.00 price target on this biotherapeutics company's shares. This follows the release of a quarterly update from one of CSL's rivals, which revealed a sharp reduction in plasma collection costs. Morgan Stanley hasn't factored this into its model, but highlights that if CSL were to experience the same type of reduction, its earnings would be well ahead of estimates in FY 2024. The CSL share price is trading at $300.84 this morning.
Rural Funds Group (ASX: RFF)
A note out of Bell Potter reveals that its analysts have retained their buy rating and $2.65 price target on this agricultural property company's shares. Bell Potter highlights that the company's shares have been crushed over the last 18 months. This has left them trading at a 31% to their net asset value. It points out that this implies a downward correction in property values comparable to that seen in US agricultural land values in 1932-33 and 1985-87. The broker sees this as highly unlikely. The Rural Funds share price is fetching $1.94 today.
Westpac Banking Corp (ASX: WBC)
Analysts at Goldman Sachs have retained their buy rating on this banking giant's shares with a trimmed price target of $24.67. The broker was pleased with Westpac's net interest margin management during the first half of FY 2023, noting that its exit margin was stable compared to the deteriorating margins of peers. And while Westpac has walked away from its cost target, Goldman still expects a broadly flat cost trajectory over the next two years. It expects this to see Westpac outperform peers in this relatively difficult inflationary environment. The Westpac share price is trading at $21.66 on Wednesday.
