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:
Challenger Ltd (ASX: CGF)
According to a note out of Morgans, its analysts have retained their add rating on this annuities company's shares with an improved price target of $7.70. This follows the release of an update on its guidance at its investor day event. Morgans was pleased with the update and the strong momentum being displayed across the business. In light of this, it feels its shares are trading on undemanding multiples. The Challenger share price is trading at $6.21 today.
IDP Education Ltd (ASX: IEL)
A note out of Bell Potter reveals that its analysts have upgraded this language testing and student placement company's shares to a buy rating with a trimmed price target of $27.40. While news that it no longer has a monopoly on Canada for student visa language testing is a blow, it isn't the end of the world. For example, even after revising its estimates lower to account for the news, Bell Potter is still forecasting earnings per share growth of over 20% in both FY 2024 and FY 2025. The IDP Education share price is fetching $21.77 this afternoon.
Qantas Airways Limited (ASX: QAN)
Analysts at Morgan Stanley have retained their overweight rating and $8.50 price target on this airline operator's shares. Morgan Stanley was pleased with what it heard from Qantas at its investor day event. So much so, the broker believes that the company's higher earnings can be sustained and consensus expectations are too low. The Qantas share price is trading at $6.66 today.
