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:
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Life360 Inc (ASX: 360)
According to a note out of Morgan Stanley, its analysts have retained their buy rating and $19.00 price target on this location technology company's shares. The broker is feeling confident about the company's performance in FY 2024 and sees potential for it to outperform expectations when it releases its half year results next month. Particularly given the strength of the core business. It is also very positive about the launch of its advertising business and believes it opens up the company to low-income markets which wouldn't be able to afford the subscription fees. All in all, the broker believes that Life360 is well-placed to continue its strong growth over the medium term. The Life360 share price is $16.25 on Wednesday.
Lynas Rare Earths Ltd (ASX: LYC)
A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating on this rare earths producer's shares with a reduced price target of $7.00. This follows the release of a fourth quarter update which fell short of the broker's expectations. Goldman notes that sales volumes and revenue were weaker than it was forecasting. However, this was partly because Lynas was being disciplined and only fulfilling contracted customer requirements and not selling into the spot market. So, while this has led to the broker downgrading its earnings estimates, it still believes that its shares are undervalued at current levels. And with Goldman expecting rare earths supply deficits over the medium term, it feels that now is a good time to buy. The Lynas share price is fetching $5.89 today.
Woodside Energy Group Ltd (ASX: WDS)
Analysts at Macquarie have retained their outperform rating and $32.00 price target on this energy giant's shares. According to the note, the broker was pleased with Woodside's performance in the second quarter, noting that its production of 44.4 mmboe was in line with expectations. And while its LNG realised price was softer than it hoped, this was offset by better than expected costs. Overall, the broker saw nothing to change its positive view and is supportive of management's proposed acquisition of the Driftwood LNG project. The Woodside share price is trading at $27.14 this morning.
