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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ALS Ltd (ASX: ALQ)
According to a note out of Morgans, its analysts have retained their buy rating on this testing services company's shares with an improved price target of $25.30. The broker highlights that ALS has released a half year result which revealed earnings that were ahead of expectations. The good news is that Morgans believes it is onwards and upwards from here. It points out that the exploration cycle is set to accelerate given the unprecedented amount of capital raised over the last 4 to 5 months, which it expects to drive upgrades in the commodities business. Moreover, excess cash from commodities will be used for acquisitions, which could result in capital driven upgrades in life sciences. Morgans believes this will underpin earnings per share growth of 22% to 24% in both FY 2026 and FY 2027. The ALS share price is trading at $21.23 on Wednesday.
Catapult Sports Ltd (ASX: CAT)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this sports technology company's shares with a reduced price target of $6.50. This follows the release of a strong result this week, which revealed earnings ahead of guidance and ahead of Bell Potter's expectations. It notes that this was driven by a higher margin than forecast. Looking ahead, the broker sees strong double-digit growth in the core business and believe this will be augmented by the cross-sell opportunity from the recent IMPECT acquisition, as well as potential expansion into other sports. And while it has trimmed its valuation, this reflects a change in multiples due to the recent de-rating of the tech sector. The Catapult share price is fetching $4.57 at the time of writing.
TechnologyOne Ltd (ASX: TNE)
Analysts at Morgan Stanley have upgraded this enterprise software provider's shares to an overweight rating with an improved price target of $36.50. This follows the release of the company's full year results. While the broker notes that there has been a slight slowdown in its growth outside the UK market, it remains highly profitable and is generating significant free cash flow. In light of this and its positive growth outlook and defensive earnings, the broker thinks that a very attractive entry point has been created for investors. The TechnologyOne share price is trading at $29.87 this afternoon.
