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:
Guzman Y Gomez Ltd (ASX: GYG)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $42.00 price target on this quick service restaurant operator's shares. This follows the release of the company's third quarter update. The broker was pleased with Guzman Y Gomez's performance, highlighting that its sales growth has gone up a notch since the first and second quarters. So much so, Morgan Stanley believes the company is on track to outperform expectations in FY 2025. It was also pleased to see the introduction of a dividend policy which will see the majority of earnings paid out to shareholders. The Guzman Y Gomez share price is trading at $31.34 today.
Mineral Resources Ltd (ASX: MIN)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this mining and mining services company's shares with a reduced price target of $29.00. Bell Potter has named three key reasons why it remains positive on the company. One is its belief that Onslow will be commissioned successfully, despite the current challenges. It also believes that associated Iron Ore & Services volumes will enable the deleveraging of its balance sheet. In addition, it points out that Mineral Resources has other options to manage its debt, including refinancing. And given its view that iron ore will continue to see support in the US$80 to US$100 per tonne range, Bell Potter feels that its current share price is overly pessimistic. The Mineral Resources share price is fetching $14.42 at the time of writing.
Sandfire Resources Ltd (ASX: SFR)
Analysts at Goldman Sachs have upgraded this copper miner's shares to a buy rating with a $10.20 price target. According to the note, the broker made the move on valuation grounds and its positive long run view on copper despite expected volatility near term. Goldman believes the latter will underpin strong free cash flow (FCF) and deleveraging. In fact, it estimates that its shares are trading on >10% FCF yield across 2025-2027, and forecasts it to be net cash by end of FY 2026. The Sandfire share price is trading at $8.47 today.
