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:
Brickworks Limited (ASX: BKW)
According to a note out Bell Potter, its analysts have upgraded this building products company's shares to a buy rating with an improved price target of $32.00. The broker made the move partly on valuation grounds following a recent pullback in its shares price. In addition, Bell Potter thinks that now could be a good time to buy as it believes Brickworks stands to benefit from interest rate cuts, which are on the horizon in Australia. In fact, the broker estimates that a 50 basis points decrease to the cash rate would boost its earnings per share by up to 4%. Finally, it highlights that it thinks an underappreciated part of an investment in Brickworks remains its ability unlock earnings/value from rent reversion and property development. The Brickworks share price is currently trading at $26.91.
Collins Foods Ltd (ASX: CKF)
A note out of Morgans reveals that its analysts have retained their add rating on this quick service restaurant operator's shares with an improved price target of $10.50. Morgans believes that its core KFC business stands to benefit from lower poultry prices in the second half of FY 2025. In addition, it notes that a recent update from KFC's parent appears to demonstrate that the worst is now over for the brand. In light of this, it feels that now would be a good time to snap up Collins Foods' shares. The Collins Foods share price is fetching $8.45 at the time of writing.
James Hardie Industries plc (ASX: JHX)
Analysts at Goldman Sachs have retained their buy rating on this building materials company's shares with an improved price target of $57.85. This follows the release of a solid quarterly update from the company this week. Goldman notes that James Hardie delivered a result well ahead of expectations during the second quarter. The company's underlying profit of US$157 million was ahead of its own guidance range, 13% ahead of Goldman's estimate, and 8% ahead of the consensus estimate. And while the timing inflection point is uncertain (particularly for large ticket R&R activity), Goldman believes the share price is capitalising earnings that are ~11% below its FY 2026 estimate and 22% below its FY 2027 estimate. The James Hardie share price is trading at $53.35.
The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in Collins Foods. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Brickworks. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2024