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
Accent Group Ltd (ASX: AX1)
According to a note out of Bell Potter, its analysts have retained their buy rating on this footwear focused retailer's shares with a trimmed price target of $1.90. This follows a review of the retail sector by the broker this week. Bell Potter appears to see significant share price weakness this year as a buying opportunity for investors. Especially given how it expects Accent to benefit from interest rate cuts. It also expects some stabilisation in gross margins following declines throughout FY 2025. The Accent share price is trading at $1.41 on Wednesday.
Cedar Woods Properties Ltd (ASX: CWP)
Another note out of Bell Potter reveals that its analysts have retained their buy rating on this property developer's shares with an improved price target of $8.00. Bell Potter highlights that Cedar Woods has strong growth and a de-risked earnings profile with good visibility. It is forecasting a +10.8% three-year earnings per share compound annual growth rate. This is being underpinned by record presales. The broker also highlights that management has a track record of under promising and overdelivering and given the strong macro environment and quality of portfolio, it sees risk to the upside over the medium term. In light of this, Bell Potter thinks the market is applying a conservative multiple to its shares and a re-rating could be on the cards. The Cedar Woods share price is fetching $7.21 at the time of writing.
DigiCo Infrastructure REIT (ASX: DGT)
Analysts at Ord Minnett have initiated coverage on this data centre property owner's shares with a buy rating and $4.30 price target. According to the note, the broker has been looking at the property sector and believes it is destined for solid growth in the coming years. This is being driven by a combination of falling interest rates and rising asset values. Ord Minnett is also positive on the data centre space in general. So much so, it recently put a buy rating and $18.00 price target on the shares of rival NextDC Ltd (ASX: NXT). The DigiCo Infrastructure REIT share price is trading at $3.18 on Wednesday afternoon.
