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:
Cedar Woods Properties Ltd (ASX: CWP)
According to a note out of Bell Potter, its analysts have retained their buy rating and $7.20 price target on this property company's shares. Bell Potter believes that a selloff since earnings season has created a buying opportunity for investors. Particularly given the company's positive outlook, which is being underpinned by record presales, growing margins, and Australia's severe housing undersupply. In addition, it highlights that Cedar Woods' shares are changing hands at 11.1x estimated FY 2025 earnings, which is undemanding relative to historical levels. This is especially the case considering the broker is forecasting a three-year earnings per share compound annual growth rate of 11%. In addition, it points out that its shares are trading at a 6% discount to NTA, compared to its long-term premium of +33%. The Cedar Woods share price is trading at $5.26 on Wednesday.
Coles Group Ltd (ASX: COL)
A note out of Morgan Stanley reveals that its analysts have upgraded this supermarket giant's shares to an overweight rating with an improved price target of $21.70. The broker thinks that investors should be focusing on consumer staples rather than consumer discretionary stocks due to current valuations. Outside this, it likes Coles due to its ongoing market share gains and strong ecommerce performance. It also highlights that the retailer is closing the gap on its arch-rival in respect to margins. The Coles share price is fetching $19.17 at the time of writing.
Neuren Pharmaceuticals Ltd (ASX: NEU)
Another note out of Bell Potter reveals that its analysts have retained their buy rating on this pharmaceutical company's shares with a reduced price target of $20.00. Following the release of an update on the sales of its Daybue product, the broker believes the market is severely undervaluing the company's shares. In fact, it estimates that zero value is being ascribed to its very promising NNZ-2591 product candidate. This is despite Neuren having unrivalled balance sheet strength to support future NNZ-2591 development, which has delivered strong results in trials thus far. Overall, it feels that licensing income from Daybue alone supports the current share price, effectively giving investors a free option on NNZ-2591. The Neuren share price is trading at $11.19 this morning.
