Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:
Bank of Queensland Limited (ASX: BOQ)
According to a note out of Morgans, its analysts have retained their add rating and $11.00 price target on this regional bank’s shares. Morgans highlights that Bank of Queensland is trumping its peers when it comes to growth momentum. In light of this and the faster-than-expected realisation of synergies from the ME Bank acquisition, the broker sees significant value in its shares at the current level. The Bank of Queensland share price is trading at $8.27 this afternoon.
Another note out of Morgans reveals that its analysts have retained their add rating and $32.00 price target on this appliance manufacturer’s shares. This follows news that Breville has agreed to acquire Italian prosumer coffee machine company Lelit. Morgans believes the acquisition is consistent with the company’s strategic objective of adding a premium Italian espresso brand to its stable. Outside this, the broker likes Breville due to its belief that it is positioned to deliver double-digit sales growth consistently over the next few years as it grows its market share. The Breville share price is fetching $27.48 on Wednesday.
Analysts at Goldman Sachs have retained their buy rating and $131.50 price target on this mining giant’s shares. The broker was pleased with news that Rio Tinto is aiming to acquire the remaining stake of Turquoise Hill that it doesn’t own for US$2.7 billion. Doing so will increase its stake in the Oyu Tolgoi copper project to 66%. Goldman believes the miner would be getting a very good deal, estimating that the offer represents a 43% discount to its valuation. The Rio Tinto share price is trading at $107.02 today.
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