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:
BHP Group Ltd (ASX: BHP)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating on this mining giant's shares with an improved price target of $48.00. The broker believes that ASX mining shares are trading on attractive valuations compared to industrials. And with the iron ore price historically performing well during a period of US dollar weakness, it feels this bodes well for BHP. In addition, it feels that copper has a bright outlook, which is also good news for the Big Australian. The BHP share price is trading at $41.93 on Wednesday.
Mesoblast Ltd (ASX: MSB)
A note out of Bell Potter reveals that its analysts have retained their speculative buy rating on this biotechnology company's shares with an improved price target of $4.00. This follows news that the CMS in the US has announced a specific J-Code for Ryoncil for billing and reimbursement from 1 October. Bell Potter highlights that the new permanent J-Code provides a standardised, clear, permanent, and specific billing pathway for Ryoncil by Medicaid, facilitating reimbursement and broader patient access. It feels that this means the December quarter is now shaping up as the breakout period. It also feels that its quarterly cash flow will show a large reduction in cash burn as cash inflows from product sales of Ryoncil commence. The Mesoblast share price is fetching $2.97 at the time of writing.
Web Travel Group Ltd (ASX: WEB)
Analysts at Macquarie have retained their outperform rating on this travel technology company's shares with an improved price target of $6.98. According to the note, Web Travel delivered a trading update slightly ahead of expectations. In light of this, the broker remains very positive on its outlook and is increasingly confident it will reach its $10 billion FY 2030 total transaction value target. And with UEBITDA margin visibility improving, the broker thinks its shares are cheap at current levels. In fact, Macquarie highlights that its shares are trading materially below its post-pandemic average multiples. It feels this is unjustified and represents a buying opportunity. The Web Travel share price is trading at $4.21 this afternoon.
