Many of Australia's top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
Three ASX shares brokers have named as buys this week are listed below. Here's why they are bullish on them:
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Bank of Queensland Limited (ASX: BOQ)
According to a note out of Citi, its analysts have retained their buy rating and $10.25 price target on this regional bank's shares. The broker believes the post-result market selloff was unjustified and has created a buying opportunity for investors. It feel the current price to book value of 0.8x and dividend yield of 6%+ are too low for a bank that delivers ~9% cash return on equity. The Bank of Queensland share price is currently trading at $8.06.
Rio Tinto Limited (ASX: RIO)
Another note out of Citi reveals that its analysts have upgraded this mining giant's shares to a buy rating with a $135.00 price target. This follows the release of Rio Tinto's quarterly update, which revealed production that fell short of Citi's forecasts. However, the broker notes that management has retained its full year guidance. And while Citi now expects the mining giant to achieve just the low end of its iron ore guidance range, a sharp increase to its iron ore price forecasts offsets this and boosts the broker's earnings estimates. The Rio Tinto share price is fetching $116.66 today.
Santos Ltd (ASX: STO)
Analysts at Morgans have retained their add rating and lifted their price target on this energy company's shares to $10.10. This follows the announcement of a US$250 million on-market share buyback. The broker believes this is a signal that management believes the current Santos share price is cheap despite it trading at multi-year highs. In addition, Morgans was pleased to see Santos prioritising shareholder returns, particularly during periods of elevated earnings. The Santos share price is trading at $8.39 today.
