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:
Allkem Ltd (ASX: AKE)
According to a note out of Citi, its analysts have retained their buy rating on this lithium miner's shares with a trimmed price target of $18.50. This follows the release of Allkem's FY 2023 results, which came in well ahead of expectations. While slightly disappointed with delays at the Sal de Vida project, the broker remains very positive and expects its proposed merger with Livent Corp (NYSE: LTHM) to support a re-rating. The Allkem share price is trading at $14.14 this afternoon.
BHP Group Ltd (ASX: BHP)
A note out of Morgans reveals that its analysts have retained their add rating and $51.00 price target on this mining giant's shares. This follows the release of a solid FY 2023 result from the Big Australian. Morgans highlights that the mining giant is defending against broad global cost pressures and further building its competitive advantage. The BHP share price is fetching $44.08 on Wednesday.
Coles Group Ltd (ASX: COL)
Another note out of Citi reveals that its analysts have retained their add rating on this supermarket giant's shares with a reduced price target of $18.30. While Coles' earnings in FY 2023 fell well short of expectations, the broker remains positive. In fact, Citi believes that the result and commentary reinforces its view that the market consensus is too low on sales in FY 2024. The broker also remains positive on Witron benefits (~$140 million) coming through in FY25/FY26. The Coles share price is trading at $15.94 today.
