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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Data#3 Ltd (ASX: DTL)
According to a note out of Macquarie, its analysts have initiated coverage on this software reseller's shares with an outperform rating and $9.00 price target. The broker highlights that there are a number of tailwinds to earnings from the Software Refresh event in October (Windows 10 end-of-life), as well as continuing tech sale-price inflation. In addition, Macquarie thinks that Data#3's net cash balance sheet, low working capital, and capex intensity are attractive. It also believes that its Services growth will continue to build a moat for the business. The Data#3 share price is trading at $7.86 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 increased price target of $47.50 (from $37.50). This follows the release of a stronger than expected second quarter update earlier this week. The broker was also pleased to see the company increase its earnings guidance for FY 2026. In response, Bell Potter has increased its estimates and the multiples that it values its shares on. Looking ahead, the broker suspects that management could potentially upgrade its guidance again when it releases its third quarter update later this year and has named that as a potential catalyst to watch. The Life360 share price is fetching $43.10 at the time of writing.
TPG Telecom Ltd (ASX: TPG)
Another note out of the Macquarie equities desk reveals that its analysts have reinstated coverage on this telco with an outperform rating and $5.80 price target. According to the note, Macquarie likes TPG due to its growing free cash flow profile, capital return, and cost-out potential. In respect to the former, the broker believes that a mid-single-digit operating free cash flow yield is achievable, supporting a growing dividend and ongoing deleveraging of its balance sheet. In addition, it notes that industry data suggests that there is upside on churn reduction. The TPG Telecom share price is trading at $5.28 today.
