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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Challenger Ltd (ASX: CGF)
According to a note out of Citi, its analysts have upgraded this annuities company's shares to a buy rating with an improved price target of $8.30. This follows the release of strong FY 2024 results from Challenger this week. The broker was also pleased with its improving capital position. It believes this gives the company greater flexibility to grow and more protection if there are any asset fallouts, such as an increase in fixed income defaults. And with Challenger's Life business showing strong profit momentum, Citi believes this will underpin further efficiency improvements and help management deliver on its return on equity target. The Challenger share price is trading at $7.28 on Wednesday.
CSL Ltd (ASX: CSL)
Another note out of Citi reveals that its analysts have retained their buy rating on this biotherapeutics company's shares with an improved price target of $345.00. Citi notes that CSL's guidance for FY 2025 was softer than expected due to a slower improvement in the gross margins of the key CSL Behring business. However, with management sticking with its margin targets for the business, Citi remains positive on the future and continues to forecast solid profit growth for the coming years. In light of this, it thinks that CSL's shares are good value at current levels and reaffirms its buy rating. The CSL share price is fetching $301.29 on Wednesday afternoon.
James Hardie Industries plc (ASX: JHX)
Analysts at Goldman Sachs have retained their buy rating on this building materials company's shares with a trimmed price target of $55.85. According to the note, the broker was pleased with James Hardie's first quarter performance, noting that its profits were ahead of expectations. However, it concedes that its guidance for the second quarter was disappointing and fell short of estimates. Nevertheless, the broker believes that its share price is broadly capitalising earnings that are cyclically subdued in FY 2025. And with Goldman forecasting a big jump in earnings in FY 2026, it feels that its shares will eventually re-rate to reflect this. The James Hardie share price is trading at $49.87 today.
