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:
Capitol Health Ltd (ASX: CAJ)
According to a note out of Goldman Sachs, its analysts have retained their buy rating on this radiology provider's shares with a trimmed price target of 31 cents. This follows the release of a market update which revealed an encouraging top-line recovery. Looking ahead, the broker believes Capitol Health is well-positioned to benefit from the industry's volume recovery/mix tailwind from shift to higher acuity modalities. In light of this, it feels its current valuation is attractive on a growth-adjusted basis and relative to recent transaction multiples. The Capitol Health share price is trading at 25.7 cents today.
Jumbo Interactive Ltd (ASX: JIN)
A note out of Macquarie reveals that its analysts have retained their outperform rating on this lottery ticket seller's shares with an improved price target of $17.45. Macquarie is expecting a solid result from Jumbo next month and an even stronger one in FY 2024. Given this positive outlook, which is being supported by jackpot activity and the shift to online ticket buying, the broker sees scope for its shares to re-rate to higher multiples in the near future. The Jumbo share price is fetching $14.15 on Wednesday.
Megaport Ltd (ASX: MP1)
Analysts at UBS have retained their buy rating on this elastic interconnection services provider's shares with an improved price target of $12.50. UBS notes that Megaport has increased its earnings guidance for FY 2023 and expects to do the same for next year's guidance once its budget is finalised. The broker believes this is a sign that customer churn has been lower than expected since increasing prices. And with the company now cash flow positive, UBS feels the risk of another capital raising has dropped materially. The Megaport share price is trading at $9.40 this afternoon.
