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:
BHP Group Ltd (ASX: BHP)
According to a note out of Goldman Sachs, its analysts have retained their buy rating on this mining giant's shares with an improved price target of $49.10. This follows the release of a full year result on Tuesday that came in ahead of the broker's expectations. It notes that this was driven by BHP's copper division, which reported EBITDA of US$8.6 billion. This was well above Goldman's US$7.7 billion estimate thanks to a strong cost beat at South Australia copper and a revenue beat at Escondida. In light of this solid result, the broker continues to believe that BHP's shares are undervalued at current levels. Particularly given its superior margins and operating performance. The BHP share price is currently trading at $40.67 on Wednesday.
Coles Group Ltd (ASX: COL)
A note out of Macquarie reveals that its analysts have retained their outperform rating on this supermarket giant's shares with an improved price target of $20.20. Macquarie was impressed with Coles' performance in FY 2024. This was especially the case with its margins, which improved significantly more than it was forecasting. So much so, it helped Coles deliver earnings ahead of consensus estimates. Macquarie also highlights the cost savings that Coles made and believes this leaves it well-placed to deliver solid growth in FY 2025. The Coles share price is fetching $18.77 on Wednesday afternoon.
Tyro Payments Ltd (ASX: TYR)
Analysts at Morgans have retained their add rating on this payments company's shares with an improved price target of $1.63. This follows the release of Tyro's FY 2024 results earlier this week. According to the note, the broker was very impressed with the results, especially given the tough economic environment that it was operating in. Morgans highlights that the result demonstrated improved profitability through the benefits of its pricing transformation program, and efficiency improvements. In addition, the broker has increased its earnings estimates materially for FY 2025 and FY 2026 on higher EBITDA margin assumptions and lower depreciation and amortisation forecasts. The Tyro share price is trading at $1.02 at the time of writing.
