With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.
Three top ASX shares that leading brokers have named as buys this week are outlined below. Here's why they are bullish on them:
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Electro Optic Systems Holdings Ltd (ASX: EOS)
According to a note out of Ord Minnett, its analysts have retained their speculative buy rating on this defence and space company's shares with an improved price target of $14.00. The broker was pleased with a recent update from the company relating to its proposed acquisition of MARSS Group. Ord Minnett is positive on the deal, highlighting that the MARSS NiDAR system has a track record of defeating multiple Shahed drone attacks recently in the Middle East. Outside this, it was pleased to see that MARSS' order book is substantial, which boosts the total combined unconditional order book to over $726 million. In light of this, Ord Minnett has boosted its earnings estimates for the near term and its valuation accordingly. The EOS share price is trading at $8.82.
Regis Resources Ltd (ASX: RRL)
A note out of Macquarie reveals that its analysts have retained their outperform rating and $9.50 price target on this gold miner's shares. The broker has been looking at the company's plan to merge with Vault Minerals Ltd (ASX: VAU). Macquarie sees positives in the deal, noting that it has the potential to become the second-largest Australian gold miner with significant production capacity. And while it concedes that there will be no operational synergies, it points out that there will be tax benefits and a potentially lower cost of capital. The Regis Resources share price is fetching $6.38 at the time of writing.
TechnologyOne Ltd (ASX: TNE)
Analysts at Bell Potter have retained their buy rating on this enterprise technology provider's shares with an improved price target of $32.25. According to the note, the broker is feeling positive ahead of this week's half-year results release. It expects TechnologyOne's profit before tax growth to be consistent with its guidance. Bell Potter is forecasting 9% growth to $89.4 million, while the consensus estimate is for growth of 8% to $88.4 million. It also expects 17% growth in annual recurring revenue (ARR) to around $600 million. However, it suspects that there could be a positive surprise with its ARR, which could be a potential catalyst for its share price. The TechnologyOne share price is trading at $28.46 on Monday afternoon.
