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:
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.
The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.
Should you invest $1,000 in Aussie Broadband Limited right now?
Before you buy Aussie Broadband Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Aussie Broadband Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
See The 5 Stocks
*Returns as of 5 May 2024
More reading
- Why Bapcor, Botanix, Judo Capital, and Woodside shares are rising today
- These 3 ASX 200 shares were just rerated by top brokers
- Why analysts love Woodside and these ASX blue chip shares
- Goldman Sachs says these 3 ASX dividend shares are buys
- 5 things to watch on the ASX 200 on Wednesday
Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband, Goldman Sachs Group, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Leave a Reply