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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Lovisa Holdings Ltd (ASX: LOV)
According to a note out of Bell Potter, its analysts have retained their buy rating on this fashion jewellery retailer's shares with an improved price target of $36.00. The broker has been looking at the retail sector and is feeling very bullish on Lovisa's outlook. Particularly after revisiting its store network growth assumptions for new markets after taking into account some recent data points from markets such as Netherlands, Ireland, Canada, and Peru. Bell Potter estimates that Lovisa can grow its store network by 10% per annum between FY 2023 and FY 2034. In addition, it notes that there have been some encouraging trends out of the e-commerce platforms in both Australia and the US compared to its key rival. All in all, this has led to the broker boosting its earnings estimates and valuation accordingly. The Lovisa share price is trading at $31.46 on Wednesday.
Regis Resources Ltd (ASX: RRL)
A note out of Macquarie reveals that its analysts have retained their overweight rating and $2.60 price target on this gold miner's shares. This follows news that the company has approved the development of two new underground projects at Duketon in support of its underground growth strategy. These two underground mines are expected to deliver a steady state annualised gold production target of between 100,000 ounces to 120,000 ounces from FY 2027. Macquarie was pleased with the news and the longer-than-expected mine life they provide. And while it has trimmed its near term earnings slightly, the longer mine life offsets this. As a result, there are no changes to its valuation. The Regis Resources share price is fetching $2.13 this afternoon.
Telstra Group Ltd (ASX: TLS)
Analysts at Goldman Sachs have retained their buy rating and $4.55 price target on this telco giant's shares. The broker has been looking at its earnings estimates for Telstra in response to recent share price weakness and a guidance downgrade from Spark New Zealand Ltd (ASX: SPK). The good news is that Goldman remains confident in its forecast for EBITDA of $8.61 billion in FY 2025. This represents a $351 million increase on Goldman's FY 2024 estimate. In light of this, it feels that recent share price weakness has created a buying opportunity. The Telstra share price is trading at $3.64 today.
