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:
Capricorn Metals Ltd (ASX: CMM)
According to a note out of Bell Potter, its analysts have retained their buy rating on this gold miner's shares with an improved price target of $7.50. This follows news that the company plans to expand its Karlawinda Gold Project (KGP) production from ~115k ounces per annum to ~150k ounces per annum. Bell Potter thinks that the plan is economically and strategically attractive. It also believes that Capricorn Metals now has a clear pathway to combined production from its KGP and Mt Gibson Gold Projects to +300k ounces per annum. Outside this, it notes that Capricorn Metals is a sector leading gold producer with a strong balance sheet and a management team with an excellent track record of delivery. The Capricorn Metals share price was last trading at $6.31.
DroneShield Ltd (ASX: DRO)
Another note out of Bell Potter reveals that its analysts have upgraded this counterdrone technology company's shares to a buy rating with a reduced price target of $1.20. This follows the release of a third quarter update which it believes detailed a disappointing performance for the first three quarters of 2024. While this has led to the broker cutting its earnings estimates materially, it believes recent share price weakness has gone too far. Bell Potter thinks the current share price provides an attractive entry point considering DroneShield's strong runway into 2025. This includes $18 million of contracted revenue. The DroneShield share price is fetching 93.5 cents today.
Premier Investments Limited (ASX: PMV)
Analysts at Morgan Stanley have retained their overweight rating on this retail conglomerate's shares with an improved price target of $39.50. This follows news that the company is selling its Apparel Brands business to Myer Holdings Ltd (ASX: MYR). This will leave Premier Investments with the Peter Alexander and Smiggle brands. The broker believes the deal makes strategic sense and will turn Premier Investments into a higher quality business with a stronger growth outlook. In light of this, it sees value in its shares despite them rallying hard on the news. The Premier Investments share price is trading at $34.08 at the time of writing.
