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:
BHP Group Ltd (ASX: BHP)
According to a note out of Morgans, its analysts have retained their add rating on this mining giant's shares with an improved price target of $48.70. This follows the release of a strong quarterly update from the Big Australian last week. Morgans was pleased with its performance and particularly its copper operations, which delivered production comfortably ahead of expectations. This leaves BHP well-placed to achieve the top end of its copper guidance in FY 2025. The broker was also pleased to see that its iron ore production held up despite negative weather impacts during the three months. As a result, it remains positive on BHP and sees lots of value in its shares at current levels. The BHP share price is trading at $37.63 on Wednesday.
Nextdc Ltd (ASX: NXT)
A note out of Ord Minnett reveals that its analysts have retained their buy rating and $28.00 price target on this data centre operator's shares. The broker acknowledges that there are concerns about slowing demand from hyperscalers. However, it feels that these concerns are overdone and that recent weakness has created a buying opportunity. Particularly given that it estimates that NextDC's current valuation is pricing in only existing contracts and no new wins. This seems unlikely given how there is still demand from non-hyperscale customers. As a result, it thinks investors should be buying its shares now while they are down. The NextDC share price is fetching $10.96 at the time of writing.
Northern Star Resources Ltd (ASX: NST)
Analysts at Macquarie have resumed coverage on this gold miner's shares with an outperform rating and $27.00 price target. According to the release, the broker has been looking at the company's acquisition of De Grey Mining Ltd (ASX: DEG), which is nearing completion. It was pleased with the transaction and expects it to be accretive to production and net asset value. Macquarie's base case for De Grey's Hemi operation is grounded in its definitive feasibility study, which pointed to an annual output of 530,000 ounces of gold over a decade. However, Macquarie believes that an underground mine could boost production by 8% to 570,000 ounces annually. Northern Star is Macquarie's top pick of the large cap gold producers. The Northern Star share price is trading at $20.81 this afternoon.
