Many of Australia's top brokers have been busy adjusting their financial models and recommendations. This has led to a number of broker notes being released 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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Paladin Energy Ltd (ASX: PDN)
According to a note out of Morgans, its analysts have put a buy rating and $13.05 price target on this uranium producer's shares. Morgans is feeling bullish on the uranium industry, highlighting that low prices over the past couple of decades means that the chemical element is in short supply. So, with reactor demand increasing, it believes there is a structural supply deficit, which could be good news for uranium prices. It points out that China has a large number of reactors under construction and the US is targeting a significant increase in nuclear energy output over the next two decades. And given the quality of Paladin Energy's assets, Morgans believes it is well-placed to benefit from these trends. The Paladin Energy share price is trading at $10.36 on Wednesday.
TechnologyOne Ltd (ASX: TNE)
A note out of Bell Potter reveals that its analysts have retained their buy rating and $32.25 price target on this enterprise software provider's shares. This follows the release of a half-year result earlier this week. Bell Potter was pleased with the result, highlighting that its profits and annual recurring revenue were largely in line with expectations. And with management's guidance also in line with its expectations, it remains very positive on the investment opportunity here. Overall, the broker believes the stock should continue to perform well given it is the best positioned tech stock on the ASX to benefit from rather than be disrupted by artificial intelligence. The TechnologyOne share price is fetching $30.03 at the time of writing.
Temple & Webster Group Ltd (ASX: TPW)
Another note out of Bell Potter reveals that its analysts have retained their buy rating on this online furniture retailer's shares with a reduced price target of $7.00. The broker has been reviewing its estimates and valuation following a recent update. While this has seen Bell Potter trim both its earnings forecasts and price target, it remains very positive. It points out that due to the continuous decline in its share price, Temple & Webster's shares are at the levels of the last profit optimisation cycle in 2022. However, importantly, they are trading at a more attractive EV/sales multiple. Overall, it sees long term valuation support in a high-quality ecommerce retailer with range, pricing/scale advantages, and an AI/data capability backed by a strong balance sheet to take up inorganic growth opportunities. The Temple & Webster share price is trading at $4.80 today.
