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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Goodman Group (ASX: GMG)
According to a note out of Morgans, its analysts have retained their buy rating on this industrial property company's shares with an improved price target of $36.00. The broker was pleased with the company's third-quarter update, highlighting that its work in progress is expected to be ahead of consensus forecasts at the end of June. Morgans believes one important takeaway was management's view that industry data centre capex requirements likely exceed global capital market funding capacity. This has created a backdrop that favours those with secured power, sites, and locked-in capital partners like Goodman. In light of this, the broker has boosted its valuation to reflect growing conviction in the capital-scarcity moat and peer pre-commit validation. The Goodman share price is trading at $30.19 on Wednesday.
Life360 Inc. (ASX: 360)
A note out of Bell Potter reveals that its analysts have retained their buy rating on this family safety and location technology company's shares with an improved price target of $33.00. The broker has been busy reviewing Life360's quarterly update and thinks the market was focusing on the wrong thing. Instead of negatively reacting to softer monthly active user (MAU) growth, which was explainable, Bell Potter thinks investors should have responded positively to its strong growth in paying circles (paid subscribers). It believes the latter has been driven by better quality MAUs and the company now using artificial intelligence in A/B testing to help optimise marketing and subscription plans. The Life360 share price is fetching $18.91 at the time of writing.
Santos Ltd (ASX: STO)
Analysts at Macquarie have retained their outperform rating and $9.15 price target on this energy producer's shares. According to the note, the broker was pleased with Santos' investor day update. It highlights that the company's portfolio is now de-risked and higher quality. In addition, with Santos now passing its peak capital expenditure phase, the company's cash flow generation outlook appears very positive. Further, Macquarie points out that Santos has a number of high-quality opportunities to pursue to create value for shareholders. The Santos share price is trading at $7.89 on Wednesday.
