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:
CSL Ltd (ASX: CSL)
According to a note out of Macquarie, its analysts have retained their outperform rating and $330.00 price target on this biotechnology company's shares. The broker has been looking at the potential of the company's garadacimab product, which is a potential treatment of hereditary angioedema. Macquarie suspects that it could be approved later this year and start contributing revenue from next year. And given how its efficacy has been much stronger than what is already on the market, the broker feels that it will drive market share gains and be supportive of CSL's medium term earnings growth. The CSL share price is currently trading at $299.47.
Life360 Inc (ASX: 360)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $19.75 price target on this location technology company's shares. This follows the company's appearance at a conference this week. The broker highlights that management spoke positively about its ample runway for subscription growth in the United States, its significant long term advertising opportunity, and the strong progress it is making with its international expansion. Another positive is that management reiterated its commitment to profitable growth. This is being aided by strength in the high margin subscription business and advertising revenue beginning to flow. In light of this, Goldman believes that an EBITDA margin of 25% on revenue of US$1 billion is possible in the medium term. The Life360 share price is fetching $16.74 on Wednesday.
Northern Star Resources Ltd (ASX: NST)
Analysts at Morgans have initiated coverage on this gold miner's shares with an add rating and $16.90 price target. According to the note, the broker thinks Northern Star would be a good way to gain exposure to the gold price, which it expects to remain strong in the coming years. Combined with the transformation of the KCGM operation into a globally significant asset, the broker is very upbeat on the company's outlook. In fact, it suspects that KCGM will help lift annual production from 1.6 million ounces to upwards of 2.2 million ounces. And with its mines exclusively in advanced first world economies, it appears to see the company as a lower risk option in the gold space. The Northern Star share price is trading at $14.84 today.
