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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DroneShield Ltd (ASX: DRO)
According to a note out of Bell Potter, its analysts have retained their buy rating and $5.30 price target on this counter drone technology company's shares. This follows the announcement of a $25.3 million contract from a defence end customer in a Latin American country. Bell Potter points out that this means that DroneShield is now estimated to have secured 97% of its revenue forecast for FY 2025. Looking ahead, the broker expects 2026 to be an inflection point for the global counter-drone industry. It notes that a number of countries are poised to unleash a wave of spending on soft-kill detect and defeat solutions. As a result, it believes DroneShield should see material contracts flowing from its $2,550 million potential sales pipeline over the next 3-6 months as defence budgets roll over to FY 2026. The DroneShield share price is trading at $3.83 on Wednesday afternoon.
James Hardie Industries plc (ASX: JHX)
A note out of Citi reveals that its analysts have upgraded this building products company's shares to a buy rating with an improved price target of $36.50. The broker made the move on the belief that the risk/reward on offer with James Hardie shares is looking positive. This is based on its belief that the company is tracking ahead of expectations so far in FY 2026. And with housing market sentiment showing signs of improvement, Citi has boosted its near-term earnings estimates and lifted its valuation accordingly. The James Hardie share price is fetching $29.45 at the time of writing.
Lovisa Holdings Ltd (ASX: LOV)
Another note out of Citi reveals that its analysts have upgraded this fashion jewellery retailer's shares to a buy rating with a $42.50 price target. Citi has been looking into Lovisa's store rollout progress. It estimates that the company is currently opening over 2 new stores per week, which is in line with expectations. In light of this, it sees limited risk of Lovisa falling short of its store rollout targets. In fact, with a major competitor closing down, it suspects that risk could actually be to the upside. The Lovisa share price is trading at $37.09 on Wednesday.
