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:
Audinate Group Ltd (ASX: AD8)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating on this audiovisual network technology company's shares with a heavily reduced price target of $10.00. This follows the release of its FY 2024 result this week. Although the broker was pleased with Audinate's strong performance in FY 2024, it was bitterly disappointed with its guidance for the year ahead. Its analysts highlight that management is guiding to lower profits, whereas the consensus estimate was for growth greater than 20%. But with its shares crashing and Morgan Stanley confident that structural growth drivers remain in place, it is holding firm with its overweight rating and appears to see this as a buying opportunity. The Audinate share price is trading at $8.37 on Wednesday.
Pro Medicus Limited (ASX: PME)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $148.00 price target on this health imaging technology company's shares. Goldman is predicting another strong result from Pro Medicus this month. It expects revenue to rise 28% and EBITDA to be up 29%. The latter is a touch ahead of consensus estimates. And looking ahead, the broker is forecasting Pro Medicus' growth to accelerate in FY 2025. This is expected to be underpinned by a full period contribution of recent implementations, new contract wins, subsequent price increases, and negligible customer churn. The Pro Medicus share price is fetching $123.28 at the time of writing.
ResMed Inc. (ASX: RMD)
Analysts at Morgans have retained their add rating on this sleep disorder treatment company's shares with an improved price target of $35.93. This follows the release of a fourth quarter update that delivered on the market's expectations. Morgan was particularly pleased with ResMed's gross margin improvement and good cost control. In response, its analysts have boosted their earnings estimates and valuation accordingly. As a result, it thinks now could be a good time to snap up its shares. The ResMed share price is trading at $33.41 this afternoon.
