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:
Eagers Automotive Ltd (ASX: APE)
According to a note out of Bell Potter, its analysts have retained their buy rating and $13.00 price target on this automotive retailer's shares. The broker believes that consensus estimates are too low for Eagers Automotive, which could mean the company surprises to the upside with its full year results in February. This outperformance is expected to be driven by the profits from the BYD joint venture and the annual payment from Toyota. The broker also suspects that consensus estimates may gradually increase in the coming months if the market remains robust and drive the company's shares higher. The Eagers Automotive share price is trading at $10.61 on Wednesday.
Hansen Technologies Limited (ASX: HSN)
A note out of Goldman Sachs reveals that its analysts have upgraded this billing technology company's shares to a buy rating with an improved price target of $5.10. The broker is feeling positive about Hansen's outlook thanks to an acceleration in core business sales driven by structural tailwinds. It estimates that these tailwinds could support organic growth of 5% to 7% into the medium, with possible upside from large contract signings. Despite this, it notes that Hansen's shares are trading at a ~10% discount to its historical average forward EV/EBITDA multiple. Overall, on an absolute and growth-adjusted basis, it feels that its valuation is attractive compared to key peers and sees potential for it to re-rate. The Hansen share price is fetching $4.32 at the time of writing.
Northern Star Resources Ltd (ASX: NST)
Another note out of Bell Potter reveals that its analysts have initiated coverage on this gold miner's shares with a buy rating and $17.50 price target. The broker is feeling positive about Northern Star due to its significant ore reserves and exploration potential. It also notes that as one of the largest gold miners on the ASX with a low debt position, it has sector leading M&A capability for assets that fit its target criteria. In addition, it points out that the company compares well to international peer, particularly following the expansion of KCGM. The Northern Star share price is trading at $14.51 this afternoon.
