I think broker notes can be useful when they add another layer to an investment view.

They should not be followed blindly. Brokers can be wrong, forecasts can change, and target prices can move quickly. But when a broker’s thesis lines up with my own view, I think it is worth paying attention.

Morgans currently has buy recommendations on the three ASX 200 shares in this article. I also rate all three as buys.

Xero Ltd (ASX: XRO)

The first ASX 200 share is Xero.

The small business accounting software company recently reported a better-than-expected FY26 result, and Morgans believes the FY27 outlook commentary was also ahead of expectations.

What I like about Xero is that it is no longer just an accounting software business in the narrow sense. It has the chance to become a more complete financial operating system for small businesses.

That could include accounting, payroll, invoicing, payments, tax, reporting, cash flow tools, and eventually more artificial intelligence (AI)-driven support.

Morgans noted that investors appeared cautious about the risk and reward from AI disruption. I can understand that. AI could change the way small businesses interact with software over time.

But I see AI as more of an opportunity than a simple threat for Xero. If management can use it to make the platform more valuable, save customers time, and unlock new monetisation options, I think the long-term runway remains attractive.

Morgans has retained its buy recommendation and $111 target price on the stock.

Breville Group Ltd (ASX: BRG)

Breville is another ASX 200 share I like.

This is a premium appliance business with a strong position in coffee machines, kitchen products, and other higher-quality household appliances.

What makes Breville interesting to me is the way it has built a global brand around better design, performance, and the at-home coffee routine. It is not just selling appliances. It is selling products that can become part of a daily habit.

Morgans is also positive on the stock. The broker pointed to encouraging updates from relevant offshore peers, including businesses with premium appliance exposure, innovation-led product development, coffee exposure, and geographic expansion.

That is a useful read-through for Breville because it suggests premium appliance demand has not disappeared, even with a challenging consumer backdrop.

I still think investors need to be realistic. Breville can be affected by consumer confidence, currency movements, tariffs, and competition.

But I like the company’s brand, product pipeline, and international growth opportunity. In my view, it remains one of the better consumer growth shares on the ASX.

CSL Ltd (ASX: CSL)

The third ASX 200 share is CSL.

This has been a painful stock for many investors. The healthcare giant has faced downgrades, weaker confidence, and concerns around its plasma business.

Morgans recently reduced its forecasts and target price following CSL’s downgrade of guidance. The broker pointed to issues including China albumin price pressure, US immunoglobulin channel inventory normalisation, paused Iran sales, and weaker sales in some areas.

However, the important point is that Morgans still has a buy recommendation, with a target price of $147.59.

I agree with the broader thinking. CSL’s issues look serious, but I do not think they prove the business is structurally broken.

The company still has global leadership positions, large end markets, and exposure to healthcare demand that should continue to grow over time. Recovery may take years, and investors should not expect the old CSL story to simply reappear overnight.

But the valuation now looks much more interesting. If management can improve execution and rebuild confidence, I think patient investors could be rewarded.

Foolish takeaway

I like all three of these ASX 200 shares, but for different reasons.

What stands out is not simply that Morgans has buy ratings on them. It is that each stock has a credible path to being worth more over time, despite some clear risks.

Xero has a larger software opportunity ahead, Breville has a premium global brand, and CSL has recovery potential from a much lower level of confidence. For investors willing to be patient, I think all three are worth considering today.

The post 3 popular ASX 200 shares that experts rate as strong buys appeared first on The Motley Fool Australia.

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• 2 of the best ASX 200 shares to buy with $10,000
• Down 40%+! I’d buy CSL and these ASX shares while investors are still cautious
• 2 incredible ASX tech shares you’ll wish you bought and held
• Xero shares vs WiseTech shares: Which ASX tech share would I buy today?
• I would buy these world-class ASX shares for an SMSF

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Guzman Y Gomez Ltd (ASX: GYG) shares are trading in the green again on Wednesday afternoon. 

At the time of writing, the shares are up slightly, around 0.3%, to $19.46 each.

The increase means the Mexican-themed fast-food restaurant chain’s shares have rebounded by around 22% from last week’s slump. And they’re 28% higher than a historic low recorded in early April.

For the year-to-date, however, the ASX consumer discretionary shares are still down around 10%, and they’re 37% below trading levels seen a year ago.

Why is the stock rebounding?

After multiple headwinds and sombre sentiment so far this year, Guzman Y Gomez shares look to have changed trajectory.

The latest rebound this week follows news that the quick-service restaurant operator has decided to close its struggling US stores.

On Friday last week, the company announced it had exited the US market and had ceased trading in its Chicago restaurants, effective immediately. Management said that the decision was made after the business failed to meet key financial performance targets, despite solid efforts by the US team.

Founder and Co-CEO Steven Marks said that the board concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital.

It looks like investors were pleased with the announcement. This is likely because the company has made an effort to halt losses and refocus the business in Australia and Asia. 

A move like this reflects very positively on management because it isn’t easy to admit defeat and change course when a strategy starts to fail. 

The move also allows Guzman Y Gomez to refocus its business expansion in markets where the brand is stronger, and the growth trajectory is more sound.

What are the company’s growth plans now?

Instead, Guzman Y Gomez said its international expansion efforts will now focus on master franchise partners in Singapore and Japan. 

Both of these partners are delivering strong sales growth, with Singapore recently opening its 24th restaurant. The company still believes disciplined global expansion remains possible in the right markets.

The company’s long-term goal remains to reach 1,000 restaurants in Australia, with segment EBITDA at 10% of network sales.

Is this the beginning of a share price resurgence?

Analysts are mostly bullish on Guzman Y Gomez shares over the next 12 months, with many expecting the latest rally to continue.

TradingView data shows that 10 out of 14 analysts have a buy or strong buy rating on the fast-food retailers’ shares. Another two have a hold rating, and two rate the stock as a sell or strong sell.

The average $24.60 target price implies a potential 27% upside at the time of writing. Meanwhile, some are even more optimistic and tip the shares to jump 60% higher to $31 over the next 12 months.

The post Are Guzman Y Gomez shares a buy after rebounding 28% from a historic low? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have space in your portfolio for some new additions, then it could be worth considering the three ASX shares in this article.

The team at Morgans is bullish on them and has just named them as buys. Here’s what the broker is recommending to clients:

Megaport Ltd (ASX: MP1)

Morgans was pleased to see Megaport’s newly acquired Latitude.sh business announce some major contract wins.

In response to the news, the broker has retained its buy rating on Megaport’s shares with an improved price target of $15.50. It said:

MP1 has announced a series of large contract wins which are financially and strategically significant. MP1 will use its globally unique communications platform to connect servers and GPU clusters in numerous DCs across the US. DC power constraints are a growing issue and MP1 was uniquely able to stitch together multiple sites to provide consolidated inference solutions. We update our forecasts to reflect recent contract wins, lifting our TP to $15.50 per share. We retain a BUY recommendation.

Symal Group Ltd (ASX: SYL)

This public and private infrastructure services provider’s investor day event impressed Morgans.

It highlights the “immense” pipeline of potential work, which it believes could lead to the ASX share achieving its aspirational EBITDA target early.

As a result, the broker has put a buy rating and $3.35 price target on Symal’s shares. It said:

SYL’s recent investor day left us with the impression that the pipeline of potential work is immense, as the business progresses its $7.5bn of recently tendered work, along with a further $1.4bn of projects in early contractor involvement (‘ECI’). Across the key verticals of infrastructure, digital, energy and defence, the total addressable market continues to grow, which along with M&A, could see the business delivering early on its FY30 aspirational EBITDA target of $200m.

Given SYL’s history of winning approximately one out of four tenders and no sign of Government investment budgets abating, the investment thesis for SYL as the ‘picks and shovels’ of the infrastructure build out remains intact. On this basis, we reaffirm our Buy rating and $3.35/sh price target.

Treasury Wine Estates Ltd (ASX: TWE)

A third ASX share that Morgans is positive on is wine giant Treasury Wine.

The broker is feeling optimistic ahead of the Penfolds owner’s investor day event next month.

Combined with positives from its recent trading update, the broker has put a buy rating and $5.30 price target on its shares. It said:

We see TWE’s Investor Day on 4 June as a key share price catalyst. At this event, the company intends to share its detailed plans and targets for its portfolio and operating model to support a future state TWE. TWE’s recent trading update was positive with strong depletion growth, highlighting the strength of its brands. It also has the support of its banks with new debt commitments secured.

2H26 EBITS is on track to be higher than the 1H26. Following material share price weakness, given its low trading multiples and our belief that new management can deliver more acceptable returns overtime, we upgrade to a BUY recommendation.

The post Morgans says these ASX shares are buys this week appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises as inflation surprise leaves investors with one big question
• 5 ASX 200 growth shares to buy next month
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• 2 fallen ASX 200 stocks I think could recover strongly
• Treasury Wine shares slide as another leadership change hits sentiment

Motley Fool contributor James Mickleboro has positions in Megaport and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is pushing higher on Wednesday after a fresh inflation update gave investors something to work with.

At the time of writing, the benchmark index is up 0.21% to 8,675 points.

The move isn’t huge, but it’s notable given the market was under pressure earlier in the session.

The ASX 200 traded as low as 8,625.8 points before recovering after the April inflation numbers landed.

The index is still down 0.44% in 2026 and around 1.26% over the past month. Over the past year, however, it remains up about 3.19%.

Inflation gives investors a reason to buy

The Australian Bureau of Statistics (ABS) said annual inflation eased to 4.2% in April, down from 4.6% in March. The fall was helped by lower automotive fuel prices, which dropped 7% over the month after the federal fuel excise cut.

That was enough to settle some nerves after a weaker start to the session.

Lower headline inflation can reduce pressure on the Reserve Bank of Australia (RBA) to keep lifting interest rates.

It also helps explain why investors were more willing to buy stocks after the data was released.

But the report wasn’t all good news.

Trimmed mean inflation, which strips out some volatile price moves, rose to 3.4% over the year. That was up from 3.3% in March and remains above the RBA’s 2% to 3% target band.

Why the RBA question is not settled

Today’s inflation update may reduce the chance of another rate rise in June, but it doesn’t close the door on more tightening later this year.

The RBA has already lifted the cash rate 3 times this year, taking the cash rate target to 4.35%.

That is already putting pressure on households, especially mortgage holders rolling onto higher repayments.

The problem for the RBA is that the headline inflation number is only one part of the picture.

Annual inflation has eased, but the underlying measure is still moving the wrong way.

It also explains why the market reaction has been positive, but not overly excited.

Investors have enough in the numbers to justify some buying today. They do not have enough to assume the inflation fight is finished.

Banks weigh while tech helps

The recovery has not been spread evenly across the market.

The major banks are still dragging on the index, with Commonwealth Bank of Australia (ASX: CBA) shedding 0.60% to $163.32, Westpac Banking Corp (ASX: WBC) down 1.46% to $36.08, National Australia Bank Ltd(ASX: NAB) slipping 1% to $37.23, and ANZ Group Holdings Ltd (ASX: ANZ) edging 0.98% lower to $35.31.

Tech shares are doing more of the heavy lifting.

Dicker Data Ltd (ASX: DDR) is surging 7.86% to $9.61, Megaport Ltd (ASX: MP1) is climbing 7% to $14.75, and Siteminder Ltd (ASX: SDR) is up 6.5% to $3.04.

The post ASX 200 rises as inflation surprise leaves investors with one big question appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport and SiteMinder. The Motley Fool Australia has positions in and has recommended Dicker Data and SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

US company Micron Technology Inc (NASDAQ: MU) is the latest to hit the US$1 trillion valuation benchmark after a bullish broker report on the company’s shares sent them almost 20% higher in US trade.

Micron shares closed 19.3% higher at US$895.88 after UBS issued a research note on the company, tripling its price target from US$535 to US$1625 per share.

Micron shares had already more than doubled since the start of this year when they were changing hands for $US315.42.

The company is benefiting from the artificial intelligence boom, which is driving strong demand in the chip manufacturing sector, the most prominent of which is Nvidia Corp (NASDAQ: NVDA), now worth about US$5.22 trillion.

Surging revenue growth

Micron on March 18 announced its second-quarter results, saying revenue grew to US$23.86 billion, up from US$13.64 billion in the prior quarter and US$8.05 billion in the same period last year.

Net income came in at US$13.79 billion, while operating cash flow was US$11.90 billion, up from US$8.41 billion in the prior quarter and US$3.94 billion in the same period last year.

Chief Executive Officer Sanjay Mehrotra said of the results:

Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2, driven by a strong demand environment, tight industry supply, and our strong execution, and we expect significant records again in fiscal Q3. In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand. Reflecting confidence in the sustained strength of our business, our board has approved a 30% increase in our quarterly dividend.

Third quarter to smash records again

The company is forecasting revenue of US$33.5 billion in the third quarter, which Mr Mehrotra said, “exceeds the full year revenue for every year in our company’s history through fiscal 2024”.

He added:

The step-up in our results and outlook are the outcome of an increase in memory demand driven by AI, structural supply constraints and Micron’s strong execution across the board. Our memory and storage solutions are at the heart of this AI revolution. Memory makes AI smarter and more capable, enabling longer context windows, deeper reasoning chains and multi-agent orchestration. As AI evolves, we expect compute architectures to become more memory-intensive. This is why we strongly believe that Micron is one of the biggest beneficiaries and enablers of AI. AI hasn’t just increased demand for memory — it has fundamentally recast memory as a defining strategic asset in the AI era.

The post Why is everyone talking about the Micron share price? Is it the next Nvidia? appeared first on The Motley Fool Australia.

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• Morgans says these ASX shares are buys this week
• ASX 200 rises as inflation surprise leaves investors with one big question

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Micron Technology and Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Metcash Ltd (ASX: MTS) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) wholesale food, liquor and hardware distributor closed yesterday trading for $3.05. In early afternoon trade on Wednesday, shares are swapping hands for $3.09 apiece, up 1.2%.

For some context, the ASX 200 is up 0.1% at this same time.

Taking a step back, Metcash shares remain down 8.3% since this time last year, trailing the 3.1% 12-month gains posted by the benchmark index.

Although that’s not including the 18 cents a share in fully franked dividends the company has paid out to eligible stockholders over this time.

At the current share price, Metcash stock trades on a fully franked 5.8% trailing dividend yield. Taking those franking credits into account, that equates to a grossed-up yield of 8.3%.

So, is the ASX 200 stock a good buy for passive income today?

Metcash shares: Buy, hold or sell?

Shaw and Partners’ Jed Richards recently analysed the outlook for this ASX 200 dividend stock (courtesy of The Bull).

“Metcash remains a quality defensive business with diverse earnings across food, liquor and hardware,” Richards said.

“Its strong customer network provides consistent cash flow and resilience during economic uncertainty,” he added.

Indeed, with inflation remaining well above the RBA’s target range, and future interest rate rises still on the cards, there’s more than enough economic uncertainty to go around.

As for the passive income on offer from Metcash shares, Richards said, “Recent updates show stable margins despite increasing cost pressures, and the company continues to generate an attractive dividend yield.”

Connecting the dots, Richards issued a hold recommendation on the ASX 200 dividend stock.

He concluded:

While growth is modest, its defensive characteristics and reliable income stream support a hold position. It remains well positioned to benefit from steady consumer demand.

What’s the latest from the ASX 200 dividend stock?

Metcash reported its unaudited full year FY 2026 results, covering the 12 months to 30 April, on 11 May.

Highlights included expected FY 2026 revenue growth of 0.7%. And on the bottom line, the company expects to achieve underlying net profit after tax (NPAT) between $268 million and $270 million.

The company reported improved sales momentum in its Hardware and Tools business, along with a range of ongoing cost cutting initiatives, forecasting at least $25 million in annualised savings in FY 2027.

“We have delivered a solid result supported by the resilience of our Food and Liquor businesses, our diversified portfolio and disciplined execution,” Metcash CEO Doug Jones said.

Metcash shares closed up 6.6% on the day of the results release.

The post With a 6% dividend yield, should I buy Metcash shares today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares have fallen further into the red in Wednesday afternoon trade. At the time of writing, the telco stock is down around 1% to $5.24 a piece. 

The latest slump means the shares have now tumbled nearly 6% from a multi-year high recorded last week.

Why are the shares now cooling? Have Telstra shares now reached a ceiling, or is there potential for more upside ahead?

What happened to Telstra shares this week?

It looks like the downturn started when investors began taking their gains off the table after the share price spiked on Tuesday last week. 

This was accelerated when a flurry of brokers downgraded their outlooks on the stock. There have also been headwinds from broad softening in defensive shares, including telcos, and valuation concerns after Telstra’s strong price rally.

Another headline which has weighed on sentiment this week is Telstra’s latest job cuts announcement. The company announced on Tuesday that it is planning to cut around 11 jobs as part of a technology division restructure under new CEO Vicki Brady. 

The restructure collapses several of Telstra’s internal technology and infrastructure teams into two new divisions.

The latest headcount cut follows the telco’s announcement earlier this year that it would axe up to 650 roles as part of a restructuring and AI-driven efficiency programs.

Are the shares a buy, sell or hold?

Market Index data shows brokers still rate the telco’s shares as a buy, and they tip an average 1% upside to $5.32 over the next 12 months, at the time of writing. 

Sentiment looks a little different over on TradingView. Of 15 ratings, only 3 have a strong buy stance, and another 12 have a hold rating on Telstra shares. The average $5.26 target price is just two cents above the current trading level.

Jed Richards from Shaw and Partners gives Telstra shares a sell rating. He thinks that the stock is currently trading at elevated levels with its defensive appeal pushing the share price higher. 

He warns that underlying growth is limited and the dividend yield is becoming less attractive as the share price rises.

Elsewhere, analysts at Catapult Wealth also recently highlighted that while mobile price rises are expected to support Telstra’s revenue growth this year, there is uncertainty around spectrum license fees, which could remain a medium-term headwind for the company.

The post Telstra shares fall 6% from a multi-year high: What happened, and is it time to sell up? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think June could be a good time to look for quality ASX 200 growth shares.

The five shares in this article all have strong long-term growth potential in my view. 

They are not risk-free, and some trade on high expectations, but I think each could be worth buying next month. Here’s why I like them.

Megaport Ltd (ASX: MP1)

Megaport is one ASX 200 growth share I would buy for exposure to digital infrastructure.

The company has long provided network-as-a-service technology, helping businesses connect more flexibly to cloud providers, data centres, and digital services.

But the story has become more interesting since its acquisition of Latitude.sh, which added compute and storage capabilities.

Since completion, Megaport has announced several large contracts through Latitude.sh across GPU, CPU, network, and storage services. That is one reason investors have become more bullish.

There is still execution risk, and the business needs to keep proving the opportunity. But if demand for AI, cloud, and data-heavy workloads keeps growing, I think Megaport could become a much more valuable platform.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat Leisure is another ASX 200 growth share I rate highly.

The company is best known for gaming machines, but it has also built a meaningful digital gaming business. That gives it exposure to both land-based gaming and mobile entertainment.

What I like about Aristocrat is its product development strength. In gaming, great content can travel across markets and keep generating revenue for a long time.

The company also has financial strength, which gives it room to invest, acquire, and return capital when appropriate.

There are regulatory and consumer risks with this business, so it will not suit every investor. But as a global gaming technology company, I think Aristocrat remains one of the higher-quality growth options on the ASX.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is the kind of growth share that doesn’t get the headlines it deserves.

The company provides enterprise software to governments, universities, councils, and large organisations. These customers need reliable systems for finance, payroll, asset management, student administration, and other important operations.

That makes the software sticky.

I like the recurring revenue, the long customer relationships, and the company’s record of steady execution. The UK opportunity also gives TechnologyOne another growth lever if it can keep building momentum there.

The valuation can be demanding, but quality software businesses often are.

REA Group Ltd (ASX: REA)

REA Group is one of the strongest platform businesses on the ASX.

Its realestate.com.au platform benefits from a powerful network effect. Buyers and renters search where the listings are, while agents and sellers want to advertise where the audience is.

That loop gives the business a strong position in Australian property.

I also think REA has plenty of ways to grow beyond basic listings. Premium products, data, agent tools, property insights, and finance leads can all add value over time.

The housing market can be uneven, but I think REA’s competitive position remains very hard to replicate.

Sigma Healthcare Ltd (ASX: SIG)

A final ASX 200 growth share I would buy next month is Sigma Healthcare.

I think it has become a much more attractive investment opportunity since merging with Chemist Warehouse.

The combined business has exposure to pharmacy retail, healthcare distribution, wellness products, and repeat-purchase consumer health needs.

I like that mix. Healthcare retail can be more resilient than many discretionary categories, while Chemist Warehouse gives the group a powerful brand and a large store network.

If management can execute well, I think Sigma could become a much larger and more valuable healthcare retail business over time.

Foolish takeaway

I think these five ASX 200 growth shares offer a lot for investors to like heading into June.

They are exposed to different areas of the market, from digital infrastructure and software to property, gaming, and healthcare retail. That gives the list a broader feel than simply backing one growth theme.

What stands out to me is the quality of the opportunities. Each business has a clear path to becoming more valuable over time if management keeps executing well. For patient investors, I think that makes them worth considering next month and well beyond it.

The post 5 ASX 200 growth shares to buy next month appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport and Technology One. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations. This has led to a number of broker notes being released 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:

Goodman Group (ASX: GMG)

According to a note out of Morgans, its analysts have retained their buy rating on this industrial property company’s shares with an improved price target of $36.00. The broker was pleased with the company’s third-quarter update, highlighting that its work in progress is expected to be ahead of consensus forecasts at the end of June. Morgans believes one important takeaway was management’s view that industry data centre capex requirements likely exceed global capital market funding capacity. This has created a backdrop that favours those with secured power, sites, and locked-in capital partners like Goodman. In light of this, the broker has boosted its valuation to reflect growing conviction in the capital-scarcity moat and peer pre-commit validation. The Goodman share price is trading at $30.19 on Wednesday.

Life360 Inc. (ASX: 360)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this family safety and location technology company’s shares with an improved price target of $33.00. The broker has been busy reviewing Life360’s quarterly update and thinks the market was focusing on the wrong thing. Instead of negatively reacting to softer monthly active user (MAU) growth, which was explainable, Bell Potter thinks investors should have responded positively to its strong growth in paying circles (paid subscribers). It believes the latter has been driven by better quality MAUs and the company now using artificial intelligence in A/B testing to help optimise marketing and subscription plans. The Life360 share price is fetching $18.91 at the time of writing.

Santos Ltd (ASX: STO)

Analysts at Macquarie have retained their outperform rating and $9.15 price target on this energy producer’s shares. According to the note, the broker was pleased with Santos’ investor day update. It highlights that the company’s portfolio is now de-risked and higher quality. In addition, with Santos now passing its peak capital expenditure phase, the company’s cash flow generation outlook appears very positive. Further, Macquarie points out that Santos has a number of high-quality opportunities to pursue to create value for shareholders. The Santos share price is trading at $7.89 on Wednesday.

The post Top brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group and Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Life360, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Life360 and Macquarie Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors are giving Dicker Data Ltd (ASX: DDR) a closer look on Wednesday after a busy AGM update.

The ASX tech distributor is up a sizeable 8.19% to $9.64 at the time of writing.

Today’s buying follows fresh commentary on FY25 earnings, dividends, and the company’s early FY26 trading.

Nonetheless, it has still been an uneven year for the stock.

Dicker Data shares are down around 6% in 2026, even after today’s rally. But zoom out a little further, and the shares are up about 16% over the past 12 months.

The company sits in the middle of the technology supply chain, distributing hardware, software, cloud, access control, surveillance, and emerging technology products.

It also works with more than 10,000 reseller partners across Australia and New Zealand.

So, what has investors buying today?

FY25 numbers beat guidance

The company told shareholders that FY25 was a strong year, with results exceeding its guidance range.

Gross revenue rose 14.9% to $3.9 billion, helped by growth in software, endpoint solutions, PC refresh, and infrastructure.

Recurring gross sales increased 22.4% to $1.1 billion.

EBITDA lifted 6.1% to $159.4 million, while net profit before tax surged 8.8% to $124.7 million.

Earnings per share (EPS) came in at 47.4 cents, up 8.6% on the previous corresponding period.

It is worth noting that the Australia business did most of the heavy lifting.

Australian gross revenue rose 17.2% to $3.28 billion, while New Zealand gross revenue increased 3.6% to $581.2 million.

Dicker Data also pointed to a healthier balance sheet, with net debt falling by $12.8 million to $93 million.

Dividends stay in focus

Income investors also had something to cheer about in today’s update.

Dicker Data said its final FY25 dividend of 11.5 cents per share was paid in March.

That took total dividends in respect of FY25 to 44.5 cents per share.

The company has also revised its dividend policy to a payout range of 80% to 100% of net profit after tax.

The first interim FY26 dividend of 11.5 cents per share was declared on 12 May and is due to be paid on 2 June.

Why investors are getting excited

The strongest part of today’s update was the FY26 trading commentary.

Dicker Data said unaudited gross revenue for the first 4 months of FY26 rose 13.4% to $1.27 billion.

The company said the result was driven by elevated endpoint, software, and data centre refresh demand.

Net profit before tax jumped 45.5% to $47.3 million.

Management said this reflected margin improvement and the sale of existing inventory during the period.

The company also expects FY26 results to reflect strong year-to-date momentum, with growth across key areas.

The post This ASX tech share is rocketing 8% after a big AGM update appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.