Many of Australia's top brokers have been busy adjusting their financial models again. This has led to the release of a number of broker notes this week.
Three ASX shares that brokers have named as buys this week are listed below. Here's why they are feeling bullish on them right now:
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Hub24 Ltd (ASX: HUB)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $44.00 price target on this investment platform provider's shares. This follows the release of the company's third-quarter update this week. Morgan Stanley highlights that the company's platform funds under administration (FUA) of $79.7 billion came in ahead of its estimates. In light of this and higher seasonal flows, the broker sees scope for the company to outperform in the fourth quarter. The broker was also pleased to see management reaffirm its guidance for platform FUA to reach $92 billion to 100 billion in FY 2025. The HUB24 share price is trading at $39.62 this afternoon.
Pro Medicus Limited (ASX: PME)
A note out of Goldman Sachs reveals that its analysts have initiated coverage on this health imaging company's shares with a buy rating and $134.00 price target. The broker sees Pro Medicus as the clear incumbent technology leader in a growing market with a strong financial profile and significant artificial intelligence upside. Goldman believes that the company's Visage 7 platform is core to many healthcare institutions, providing efficiency gains in a market where demand for imaging continues to grow and radiologist shortages persist. It thinks it can increase its US market share to 13% in FY 2030 from ~7% today. The Pro Medicus share price is fetching $101.94 on Wednesday.
Zip Co Ltd (ASX: ZIP)
Analysts at UBS have retained their buy rating on this buy now pay later provider's shares with an improved price target of $1.55. This follows the release of the company's third-quarter update this week which revealed a 14.6% increase in total transaction volume and a 26.6% jump in revenue. UBS was pleased with the stronger-than-expected update. It notes that it was driven by a particularly strong performance from its Zip Americas business. And while it was slightly disappointed with the performance of the Zip AU business, it believes this will stabilise in FY 2025 and then return to growth. Overall, the broker was impressed and its earnings estimates have been revised higher. The Zip share price is trading at $1.14 on Wednesday afternoon.
