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:
Santos Ltd (ASX: STO)
According to a note out of Macquarie, its analysts have retained their outperform rating on this energy producer's shares with a trimmed price target of $8.45. Macquarie thinks that investors should be snapping up its shares after they pulled back following the collapse of its takeover by the XRG consortium. And while the deal break was disappointing, from current levels the broker now sees extraordinary value for longer-term investors. It highlights that Santos shares now imply a US$51 per barrel oil price, which is a significant discount to rival Woodside Energy Group Ltd (ASX: WDS) at US$60 per barrel and the forward curve of US$66 per barrel. Outside this, it believes its free cash flow growth is very positive given its major capex is now out of the way. The Santos share price is trading at $6.82 on Wednesday.
Telix Pharmaceuticals Ltd (ASX: TLX)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $25.60 price target on this radiopharmaceuticals company's shares. This follows news that its Gozellix product has been granted Transitional Pass-Through payment status by the United States Centers for Medicare & Medicaid Services (CMS). Gozellix is Telix's next generation PSMA-PET imaging agent for prostate cancer. The broker believes this is a positive and should support uptake for the product among the CMS patient population. This is estimated to be in the region of 20% of patients who are treated in outpatients. The Telix share price is fetching $15.83 at the time of writing.
Vulcan Energy Resources Ltd (ASX: VUL)
Analysts at Bell Potter have retained their speculative buy rating on this lithium developer's shares with an improved price target of $6.25. According to the note, the broker has visited Vulcan Energy's operations in Germany and was pleased with what it saw. In light of this, it continues to believe that the company will benefit as lithium markets rebalance over the medium term. In fact, based on its lithium price forecasts, the broker expects Vulcan Energy to deliver average EBITDA of 290 million euros (A$517 million) per annum. The Vulcan Energy share price is trading at $4.89 today.
