Many of Australia's top brokers have been busy adjusting their financial models and recommendations 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 their analysts are feeling bullish on them right now:
Bellevue Gold Ltd (ASX: BGL)
According to a note out of Goldman Sachs, its analysts have initiated coverage on this gold miner's shares with a buy rating and $2.20 price target. Goldman highlights that Bellevue Gold is now largely through its initial ramp up. As a result, it sees the business as well positioned and attractively priced compared to mid-cap peers. Especially given its higher average grades, stronger margin generation, and near-term free cash flow yields of ~10%. Goldman also sees low-cost mill expansion and underground optionality potentially supporting further upside for the company in the medium term. The Bellevue Gold share price is trading at $1.71 on Wednesday.
Collins Foods Ltd (ASX: CKF)
A note out of UBS reveals that its analysts have upgraded this quick service restaurant operator's shares to a buy rating with an improved price target of $11.50. This follows the release of its FY 2024 results on Tuesday that were comfortably ahead of expectations. In addition, while some investors may be concerned with its soft start to FY 2025, with sales down 0.8% on a like for like basis, UBS isn't fazed by this. In fact, it feels it is a strong showing given the tough comparables its KFC Australia business is facing. UBS also suggests that as its comparables ease in the second half, it could return to growth on a like for like basis. The Collins Foods share price is fetching $9.22 this afternoon.
Perpetual Ltd (ASX: PPT)
Analysts at Bell Potter have retained their buy rating and $27.60 price target on this fund manager's shares. According to the note, the broker believes the market is undervaluing Perpetual's business after announcing the sale of its Corporate Trust (CT) and Wealth management (WM) businesses to KKR for $2.175 billion. It thinks the company should be value at 6.3x FY 2025 EBITDA, which is in line with global peers. This values the company at $18.17 per share and then the remaining value comes from its estimated cash distribution following the sale of the CT and WM businesses. Bell Potter sees scope for a distribution of up to $9.55 per share. The Perpetual share price is trading at $21.07 at the time of writing.
