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:
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Austal Ltd (ASX: ASB)
According to a note out of Bell Potter, its analysts have retained their buy rating on this shipbuilder's shares with an improved price target of $3.15. This follows news that Austal has received a US$450 million contract from General Dynamics Electric Boat. This contract will see Austal expand its shipyard by designing and constructing a new module fabrication and outfitting facility to support the U.S. Navy Submarine Industrial Base (SIB). While Bell Potter has not factored the contract into its estimates at this stage, it believes this is a significant development that will diversify its shipbuilding operations, drive long-term revenue growth, and reinforce its position as a key contributor to the US naval industrial base. As such, it believes the company's shares deserve to trade on higher multiples and has boosted its valuation accordingly. The Austal share price is trading at $2.72 on Wednesday.
New Hope Corporation Ltd (ASX: NHC)
A note out of Morgans reveals that its analysts have upgraded this coal miner's shares to an add rating with a trimmed price target of $5.20. The broker believes that New Hope's shares have been sold off unfairly due to bearish sentiment in the steel industry. Morgans notes that this leaves its shares trading at a material discount to their net present value for the first time since mid-2023. In light of this, the broker feels that its shares are now genuinely cheap. Particularly given its defensive attributes and broader hard-asset base, which make it better suited to buy and hold or value investors. The New Hope share price is fetching $4.47 at the time of writing.
Perseus Mining Ltd (ASX: PRU)
Analysts at UBS have initiated coverage on this gold miner's shares with a buy rating and $3.00 price target. According to the note, the broker likes Perseus due to its positive view on the outlook of the gold price and the company's mining portfolio. It highlights the strong annual production and competitive all-in costs that assets such as the Yaoure gold mine in the Ivory Coast are underpinning through to the end of the decade. Combined with the potential for capital returns, it sees Perseus as a great way to gain exposure to the sky high gold price. The Perseus share price is trading at $2.55 today.
