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:
Fortescue Ltd (ASX: FMG)
According to a note out of Morgans, its analysts have upgraded this iron ore miner's shares to an add rating with a $23.00 price target. The broker made the move on valuation grounds following a significant pullback this week after one of its institutional investors sold $1.9 billion worth of shares at a sizeable discount. However, the broker acknowledges that this was a difficult recommendation upgrade to make. This is because it believes there are substantial risks and fundamental challenges still facing the company. The Fortescue share price is trading at $18.66 today.
Liontown Resources Ltd (ASX: LTR)
A note out of Bell Potter reveals that its analysts have retained their speculative buy rating on this lithium developer's shares with an improved price target of $1.90. This follows the release of a quarterly update which revealed that the Kathleen Valley Lithium Project is on track to commence production imminently. In addition, the broker highlights that Liontown recently signed an offtake agreement with Beijing Sinomine International Trade (BSIT) covering up to 100kt of concentrate supply over a 10-month period. As BSIT is a lithium miner, it believes this provides some evidence that lithium markets may be tighter than current pricing and media suggests. Outside this, the broker likes Liontown due to the quality of the Kathleen Valley Lithium Project and its belief that it is a highly strategic asset. The Liontown share price is fetching 92 cents on Wednesday.
Woolworths Group Ltd (ASX: WOW)
Analysts at Goldman Sachs have retained their conviction buy rating and $40.20 price target on this supermarket giant's shares. This follows news that the CEO of its key Australian supermarkets business is leaving. Combined with the exit of group CEO, Brad Banducci, Woolworths will lose two key executives in September. However, Goldman Sachs isn't worried. This is because it believes Banducci's replacement, Amanda Bardwell, will bring the skillset and experience to drive Woolworths to the next level of growth. It also notes that finding a new CEO for the Australian supermarkets business will not be difficult given the deep talent pool in the industry. The Woolworths share price is trading at $34.53 on Wednesday morning.
