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:
Breville Group Ltd (ASX: BRG)
According to a note out of Macquarie, its analysts have retained their outperform rating on this appliance manufacturer's shares with a trimmed price target of $40.20. The broker has been looking at industry data and believes it is supportive of its revenue growth forecasts for Breville. This is good news because the broker is forecasting double-digit sales growth through to 2027, underpinned by its global expansion and exposure to the booming coffee market. And while it has cut its earnings estimates slightly to reflect higher costs and has trimmed its valuation accordingly, it still sees significant value on offer here for investors. The Breville share price is trading at $30.00 on Wednesday afternoon.
Metcash Ltd (ASX: MTS)
A note out of UBS reveals that its analysts have retained their buy rating on this wholesale distributor's shares with an improved price target of $4.00. This follows news that the company is planning to merge its Independent Hardware Group (IHG) and Total Tools businesses. It is positive on the move and feels it positions Metcash well for a recovery. And though it would have preferred the Total Tools CEO to stay with the company, it is pleased to see the IHG CEO remaining with the merged group. Overall, the broker has boosted its earnings estimates for the coming years on the belief that the Hardware segment will now deliver better than expected earnings before interest and tax (EBIT). The Metcash share price is fetching $3.66 at the time of writing.
NextDC Ltd (ASX: NXT)
Analysts at Morgans have retained their buy rating and $18.80 price target on this data centre operator's shares. According to the note, the broker was pleased to see that NextDC has secured a significant customer for its Kuala Lumpur (KL1) site in Malaysia. It feels that this customer win validates the company's decision to build data centres in the Asia-Pacific. Morgans has boosted its earnings estimates for FY 2027 to reflect recent customer wins and stronger than expected sales momentum. The NextDC share price is trading at $13.99 on Wednesday.
