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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Macquarie Group Ltd (ASX: MQG)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating on this investment bank's shares with a trimmed price target of $248.00. This follows the release of the company's half year results. Although the broker acknowledges that Macquarie's earnings fell comfortably short of expectations, it remains positive on the bank and believes it offers multi-year earnings growth that the market isn't fully appreciating. In light of this, it sees value in its shares at current levels and is tipping them as a buy. The Macquarie share price last traded at $218.21.
Mineral Resources Ltd (ASX: MIN)
A note out of Bell Potter reveals that its analysts have retained their buy rating and $61.50 price target on this mining and mining services company's shares. This follows news that its founder and CEO, Chris Ellison, is stepping down after an investigation. Bell Potter notes that it continues to base its investment view on the fundamentals of its business rather than focus on the CEO scandal. It also believes that once the dust settles and proposed actions are taken, Mineral Resources will continue to be an attractive investment, and accordingly it maintains its buy recommendation. Though, it does concede that its share price could be volatile in the near term as its investigation continues and speculation mounts about what Ellison will do with his sizeable stake in the company. The Mineral Resources share price was fetching $38.20 at the end of yesterday's sessions.
Xero Ltd (ASX: XRO)
Analysts at Goldman Sachs have retained their conviction buy rating and $201.00 price target on this cloud accounting platform provider's shares. According to the note, the broker believes that Xero could outperform expectations when it releases its half year results next week. Goldman expects the company to report a 28% increase in revenue to NZ$1,025 million. This is ahead of the consensus estimate for revenue of NZ$998 million. It expects this to be underpinned by a 180,000 increase in subscribers and an 18% lift in average revenue per user. The latter reflects the significant re-pricing of plans through the period. The Xero share price last traded at $150.30.
