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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ARB Corporation Ltd (ASX: ARB)
According to a note out of Macquarie, its analysts have retained their outperform rating on this 4×4 automotive parts company's shares with a trimmed price target of $35.80. This follows the release of a half year update which revealed underlying profits well short of expectations. This was driven by weaker than expected margins. In addition, export sales were softer than the broker was expecting during the half. Nevertheless, Macquarie thinks its shares offer value for money following recent weakness and reaffirms its outperform rating. The ARB share price is trading at $27.38 on Wednesday afternoon.
BHP Group Ltd (ASX: BHP)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $56.50 price target on this mining giant's shares. The broker was pleased with the Big Australian's performance during the second quarter. This was particularly the case with its iron ore operations, which outperformed expectations. In addition, it was pleased to see its copper operations deliver production ahead of forecasts, largely due to the key Escondida mine. All in all, Morgan Stanley has seen nothing to change its positive view of the stock. The BHP share price is fetching $48.31 at the time of writing.
Hub24 Ltd (ASX: HUB)
Analysts at Bell Potter have retained their buy rating and $125.00 price target on this investment platform provider's shares. According to the note, the broker was impressed with the company's performance during the second quarter. It highlights that it achieved the highest quarterly inflow on record. In addition, it points out that management provided similarly positive comments around its pipeline. Bell Potter backs this up, noting that its own channel checks indicate that Hub24 continues to rank first for future flow intentions. In light of this and with the current forward multiple around average levels, the broker sees value in Hub24's shares at these levels. The Hub24 share price is trading at $101.39 today.
