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 $5.00 price target on this counter-drone technology company's shares. This follows the release of another strong update from DroneShield this week. Bell Potter notes that the company's sales growth was stronger than it was expecting. And while its sales pipeline has shrunk since October, it isn't concerned. It believes this reflects the loss of low probability contracts or potential contracts that have been reduced in size. Outside this, the broker believes the company has a market leading offering and a competitive advantage owing to its years of battlefield experience. This bodes well for 2026 given how Bell Potter believes this year will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending. The DroneShield share price is trading at $4.00 on Wednesday afternoon.
Life360 Inc. (ASX: 360)
A note out of Citi reveals that its analysts have retained their buy rating on this location technology company's shares with a reduced price target of $40.75. The broker was pleased with Life360's fourth quarter and full year update, highlighting that it was stronger than expected with monthly active users (MAUs) and guidance for FY 2026 surprising to the upside. The latter includes guidance for 20% growth in MAUs, which Citi believes should ease concerns that its user growth was slowing. Overall, it thinks the result was strong and investors should be snapping up shares at current levels. The Life360 share price is fetching $28.67 at the time of writing.
Light & Wonder Inc (ASX: LNW)
Analysts at Morgan Stanley have initiated coverage on this gaming technology company's shares with an overweight rating and $220.00 price target. The broker believes that recent developments position Light & Wonder to grow quicker than the industry over the medium term. In light of this and its attractive valuation, Morgan Stanley sees potential for a material re-rating in its valuation in the near term. This will especially be the case if the company executes its growth strategies successfully. The Light & Wonder share price is trading at $163.81 this afternoon.
