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:
Image source: Getty Images
Gold Road Resources Ltd (ASX: GOR)
According to a note out of Bell Potter, its analysts have retained their buy rating and $2.95 price target on this gold miner's shares. This follows news that the company's first quarter production is below plan due to crusher maintenance and the failure of two conveyor belts. While the broker has trimmed its production forecast slightly to reflect this news, this has been offset by an increase in its gold price assumptions. In addition, the broker believes that Gold Road can still produce at near to the middle of its guidance range in FY 2025 despite this hiccup. As a result, it feels that the company remains an attractive investment. Especially given strong spot gold prices, its growing gold production is unhedged, and potential capital returns or M&A activity. The Gold Road share price is trading at $2.42 on Wednesday.
REA Group Ltd (ASX: REA)
Another note out of Bell Potter reveals that its analysts have retained their buy rating on this property listings company's shares with a lowered price target of $264.00. The broker notes that the company's shares have pulled back recently amid concerns over a potential increase in competition and early indicators of moderating volume growth. In response to these concerns, the broker has lowered the target multiples that it uses when valuing the realestate.com.au operator. While this has led to a reduction in its valuation, its shares are still trading comfortably below this level and therefore it remains very positive on the investment opportunity here. Especially given its positive long-term view of REA Group, with a cash flow profile able to sustain operational and capital expenditure to support its market leading position. The REA Group share price is fetching $225.57 at the time of writing.
Telstra Group Ltd (ASX: TLS)
Analysts at Goldman Sachs have retained their buy rating and $4.50 price target on this telco giant's shares. According to the note, the broker has been looking at the telco sector following earnings season. It is feeling positive about Telstra's outlook and is expecting a broadly positive T30 investor update from the company in the coming months. Goldman expects this to focus on digital infrastructure (incl. 100-200MW Edge DC), ongoing cost efficiency, and ongoing earnings/returns improvements. The Telstra share price is trading at $4.08 on Wednesday.
