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 Morgans, its analysts have upgraded this lithium miner's shares to an add rating with an improved price target of $15.30. This follows the release of a broad update on the company's operations. While Morgans has lifted its cost expectations for Allkem, the addition of the Cauchari operation into its model results in an increase in its valuation. In light of this and recent weakness, the broker believes the current share price represents a very attractive entry point for investors. The Allkem share price is trading at $11.33 today.
Lovisa Holdings Ltd (ASX: LOV)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $25.25 price target on this fashion jewellery retailer's shares. The broker believes that investors may be concerned by a sudden slowdown in store rollouts. However, it isn't worried and highlights Lovisa's huge long-term expansion opportunity. And while FY 2024 could be a subdued year for sales growth, Morgan Stanley expects a return to form the following year. The Lovisa share price is fetching $19.25 on Wednesday.
Pro Medicus Limited (ASX: PME)
Analysts at Goldman Sachs have reiterated their buy rating on this health imaging technology company's shares with an improved price target of $88. This follows the announcement of a huge contract win in the United States. Goldman has updated its estimates and is now forecasting operating earnings growth of 26%+ per annum through to FY 2026. This contract win supports its view of Pro Medicus being the clear incumbent technology leader in a growth market. The Pro Medicus share price is trading at $80.20 this afternoon.
