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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Breville Group Ltd (ASX: BRG)
According to a note out of Macquarie, its analysts have retained their outperform rating and $39.20 price target on this appliance manufacturer's shares. The broker highlights that the Macquarie Kitchen Benchmark and De'Longhi Revenue Index have delivered strong growth so far in the third quarter. And given how Breville has outperformed the benchmark by 11% per annum between 2018 and 2024, it believes this supports it forecast for 10%+ per annum revenue growth between FY 2025 and FY 2028. This is expected to be underpinned by its coffee segment, new market development, and its investment in new product development. The Breville share price is trading at $29.43 on Wednesday afternoon.
Collins Foods Ltd (ASX: CKF)
A note out of Citi reveals that its analysts have retained their buy rating on this KFC restaurant operator's shares with a trimmed price target of $12.85. This follows the release of a half year result which came in ahead of expectations. In addition, Citi highlights that management has upgraded its profit guidance for the full year. It is now expecting profit growth of mid-to-high teens from low-to-mid teens previously. And while its sales growth rate is a touch behind expectations, the broker has only reduced its estimates by a touch. The Collins Foods share price is fetching $10.74 at the time of writing.
NextDC Ltd (ASX: NXT)
Analysts at Morgans have upgraded this data centre operator's shares to a buy rating with a $19.00 price target. According to the note, the broker was pleased to see NextDC report new contract wins, which it believes includes a large single customer contract win across multiple locations. This has lifted its contracted utilisation by 71MW to 316MW, which is supportive of Morgans growth forecasts. In light of this and significant share price weakness over the past three months, the broker sees significant upside potential for investors between now and this time next year. The NextDC share price is trading at $13.55 on Wednesday.
