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:
Image source: Getty Images
Aussie Broadband Ltd (ASX: ABB)
According to a note out of Ord Minnett, its analysts have upgraded this broadband provider's shares to a buy rating with an unchanged price target of $4.20. The broker was pleased to see the company increase its earnings guidance for FY 2024 last month. It also highlights that Aussie Broadband has been winning market share from rivals. The good news is that Ord Minnett feels that this trend can continue after its largest rival, Telstra Group Ltd (ASX: TLS), announced price increases for its own broadband plans. The Aussie Broadband share price is trading at $3.52 on Wednesday afternoon.
QBE Insurance Group Ltd (ASX: QBE)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $20.90 price target on this insurance giant's shares. The broker highlights that QBE's management has recently held a number of investor meetings. It notes that management conveyed greater confidence on the delivery of its 95% combined operating ratio (COR) in North America by 2025. As a reminder, the lower the COR, the more profitable QBE's operations are. In light of these investor meetings, Goldman believes that there is now upside risk to the FY 2025 consensus COR of 92.8%. In fact, it sees under 92.5% as possible, reflecting an improvement from North America, a North America non-core run off, and organic trends. The QBE share price is fetching $18.52 today.
Woodside Energy Group Ltd (ASX: WDS)
Analysts at Macquarie have upgraded this energy giant's shares to an outperform rating with an unchanged price target of $32.00. According to the note, the broker made the move largely on valuation grounds. Its analysts believe that Woodside's shares are trading meaningfully lower than their intrinsic value based on its estimate of a long-term oil price of US$65 a barrel. In fact, the broker feels that the market is valuing its shares on the equivalent of a US$56 a barrel long term oil price. And given that Macquarie's own estimate is below consensus forecasts, it believes this is unwarranted. Even after factoring in project and climate risks. The Woodside share price is trading at $27.81 on Wednesday.
