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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DigiCo Infrastructure REIT (ASX: DGT)
According to a note out of Morgans, its analysts have retained their buy rating and $5.10 price target on this data centre focused property company's shares. This follows a review of the property sector this week by the broker. Morgans is feeling particularly positive about the outlook for data centres. And for DigiCo, it sees several potential catalysts which it thinks could give its shares a huge lift it they are executed successfully. In addition, it sees significant value in its shares at current levels and a very favourable risk/reward. The DigiCo Infrastructure share price is trading at $3.15 on Wednesday.
Life360 Inc. (ASX: 360)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this location technology company's shares with an improved price target of $37.50. Bell Potter is expecting another strong result next month when Life360 releases its second quarter update. It is forecasting a 29% increase in revenue to US$109.1 million and a 26% lift in global monthly active users to 88.6 million. This is expected to underpin a 37% jump in annualised monthly revenue to US$418.1 million. And while its suspects that underlying EBITDA could soften quarter on quarter due to a higher sales and marketing investment, it believes management will reaffirm its earnings guidance for the full year. The Life360 share price is fetching $33.01 today.
Xero Ltd (ASX: XRO)
Analysts at Morgan Stanley have retained their overweight rating and $235.00 price target on this cloud accounting platform provider's shares. According to the note, the broker is feeling even more positive on Xero due to its belief that it is well positioned to grow its share of the small and medium business market in the United States. This is partly due to the proposed acquisition of Melio. Morgan Stanley believes it will enhance its offering in the massive market by unifying payments and accounting into one platform. The Xero share price is trading at $177.67 on Wednesday afternoon.
