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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BHP Group Ltd (ASX: BHP)
According to a note out of Goldman Sachs, its analysts have retained their buy rating and $47.30 price target on this mining giant's shares. The broker has been visiting the company's copper operations in Chile and appears pleased with what it saw. It notes that BHP plans to spend US$10.7 billion to US$14.8 billion to deliver a potential ~0.5Mtpa of copper production to offset depletion. This is good news given the broker's positive view on copper due to supply side challenges and increasing demand. Outside this, it continues to see value in BHP's shares at current levels and believes they deserve to trade at a premium to peers. This is due to its ongoing superior margins and operating performance. The BHP share price is trading at $40.22 on Wednesday.
Qantas Airways Limited (ASX: QAN)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating on this airline operator's shares with an improved price target of $10.50. The broker made the move after adjusting its estimates to reflect lower fuel prices. Morgan Stanley believes lower prices are now a tailwind for the airline and come at a time when travel demand remains strong. As a result, it believes there are upside risks to expectations. In addition, it sees scope for the Flying Kangaroo to announce another share buyback in FY 2025. This is on top of the broker's expectation for Qantas to commence dividend payments this financial year. The Qantas share price is fetching $8.90 at the time of writing.
TechnologyOne Ltd (ASX: TNE)
Analysts at UBS have retained their buy rating on this enterprise software provider's shares with a vastly improved price target of $33.80. According to the note, the broker was impressed with TechnologyOne's performance in FY 2024. It notes that its profit before tax was well ahead of expectations and driven by stellar recurring revenue growth. The good news is that UBS is confident that more of the same is coming. In fact, it suspects that TechnologyOne's profit before tax could grow at approximately 20% per annum for the next five years. In light of this, the broker believes that the tech stock deserves to trade with a premium valuation. The TechnologyOne share price is trading at $28.92 today.
