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:
CSL Ltd (ASX: CSL)
According to a note out of Morgans, its analysts have retained their buy rating on this biotech giant's shares with a reduced price target of $249.51. While the broker acknowledges that CSL's guidance downgrade was disappointing and it remains challenging to know when US influenza vaccination rates will stabilise, it thinks the selloff has been severely overdone. As a result, it feels that its shares are trading on unjustifiably low earnings multiples at present. In light of this, it is recommending investors buy the dip in its share price. The CSL share price is trading at $171.22 on Wednesday afternoon.
Guzman Y Gomez Ltd (ASX: GYG)
Analysts at Macquarie have initiated coverage on this quick service restaurant operator's shares with a $31.10 price target. According to the note, the broker believes that recent share price weakness has created an attractive entry point for investors. Especially given that fresh eating trends are supporting market share gains and its focus on high-growth dayparts is accelerating its comparable store sales growth. Combined with its bold expansion plans, the broker believes that the Guzman Y Gomez can deliver strong earnings growth through to FY 2030. The Guzman Y Gomez share price is fetching $26.14 at the time of writing.
Liontown Resources Ltd (ASX: LTR)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this lithium miner's shares with an improved price target of $1.30. This follows the release of a solid quarterly update earlier this week. Bell Potter was pleased with the update and expects the coming quarters to be even stronger thanks to the ramp up of underground mining. As a result, it feels the company is in a strong position to deliver on its reiterated FY 2026 guidance. It also believes that Liontown will benefit as improved lithium pricing over recent months flows through to lagged-price offtake contracts. The Liontown share price is trading at $1.03 on Wednesday.
