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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Gentrack Group Ltd (ASX: GTK)
According to a note out of Bell Potter, its analysts have retained their buy rating on this utilities software company's shares with a trimmed price target of $13.20. This follows the release of a half year result this week that was below expectations. Bell Potter notes that project revenues within utilities dragged slightly against a strong prior period and the phasing of contract wins. Nevertheless, it remains positive on the future and is bullish on Gentrack's ability to maintain customer win momentum. It expects this to support high NRR revenues, which will flow onto ARR. The Gentrack share price is trading at $10.57 on Wednesday afternoon.
ResMed Inc. (ASX: RMD)
A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $49.30 price target on this sleep disorder treatment company's shares. This follows news that Apnimed has had success with its phase 3 trial of a sleep apnoea pill. Goldman Sachs isn't concerned and feels that the share price weakness caused by the news has been an overreaction. It believes that Apnimed's AD109's pill is unlikely to displace CPAP as first line therapy in treating OSA. Particularly given that its initial target opportunity are patients who have refused or have failed CPAP. In light of this, Goldman Sachs remains as bullish as ever on ResMed and its long term zoutlook. The ResMed share price is fetching $38.80 at the time of writing.
TechnologyOne Ltd (ASX: TNE)
Analysts at UBS have retained their buy rating on this enterprise software company's shares with an improved price target of $42.20. According to the note, the broker was impressed with TechnologyOne's half year results. It highlights that annual recurring revenue grew strongly and was in line with its expectations. Whereas its profits were comfortably ahead of its estimates for the half. Combined with its strong net revenue retention rate and ultra low churn levels, it believes the result supports its bullish view on the long term growth outlook of the company. The Technology One share price is trading at $38.46 this afternoon.
