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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Collins Foods Ltd (ASX: CKF)
According to a note out of Morgans, its analysts have retained their buy rating on this KFC restaurant operator's shares with an improved price target of $12.20. This follows the release of a trading update at its annual general meeting this week. Morgans notes that the update was stronger than expected, with improving sales growth seen across all regions. And while management has reiterated its FY 2026 guidance for low to mid-teens underlying net profit after tax growth, the broker believes that its trading update confirms that this guidance is likely conservative. Particularly given that its improving sales growth is being delivered through product innovation and strong execution. And with a domestic consumer recovery still largely yet to play out, it sees further upside from here. The Collins Foods share price is trading at $10.40 on Wednesday.
Harvey Norman Holdings Ltd (ASX: HVN)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this retail giant's shares with a significantly improved price target of $8.30. Bell Potter points out that despite a strong re-rate this year, Harvey Norman's shares still trade at ~2.0x market capitalisation to freehold property value, which it sees as attractive. In addition, while the company will be cycling strong comparable store sales growth in Nov/Dec, it believes it is well-positioned to continue its growth. This is thanks to the AI driven upgrade/replacement cycle in Computers/Consumer Electronics and a recovery in other categories such as Furniture & Bedding. All in all, the broker believes that a 1-year forward ~20x P/E multiple is justified considering the multiple catalysts near/mid-term. The Harvey Norman share price is fetching $7.32 at the time of writing.
NRW Holdings Limited (ASX: NWH)
Analysts at Macquarie have upgraded this contract services provider's shares to an outperform rating with a $4.45 price target. According to the note, the broker was pleased with news that NRW is acquiring Fredon. It highlights that the deal creates a strategic "4th Pillar" of operations, labelled "EMIT" (Electrical, Mechanical, Infrastructure, Technology). It feels this complements the existing Civil, Mining, and MET (Mining Equipment Technology) segments. Macquarie also points out that the deal is highly accretive and there is strong upside risk to FY 2027 forecasts and beyond as NWH leverages the combined business. The NRW share price is trading at $4.01 this afternoon.
