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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:
Northern Star Resources Ltd (ASX: NST)
According to a note out of Citi, its analysts have upgraded this gold miner’s shares to a buy rating with an improved price target of $15.90. The broker is feeling positive about Northern Star due to its belief that gold prices will be strong for the foreseeable future. Especially with Citi expecting the US Federal Reserve to cut interest rates in the near future, which will boost the appeal of the precious metal. In light of this and with Northern Star’s shares recently underperforming peers, Citi thinks that now could be the time to snap up its shares. The Northern Star share price is trading at $12.90 on Wednesday.
Qantas Airways Limited (ASX: QAN)
A note out of Morgans reveals that its analysts have retained their add rating on this airline operator’s shares with an improved price target of $7.00. Ahead of its results release next month, Morgans is forecasting Qantas to deliver its second largest profit in its history. It has pencilled in an underlying profit before tax of approximately $2.08 billion for the 12 months. The broker believes this will allow the Flying Kangaroo to announce a new $300 million on-market share buyback. And while it feels it is too soon for dividends this year, it expects payouts to resume from FY 2025 with a dividend of approximately 15 cents per share. The Qantas share price is fetching $6.08 today.
Telstra Group Ltd (ASX: TLS)
Analysts at Goldman Sachs have retained their buy rating on this telco giant’s shares with an improved price target of $4.30. This follows news that Telstra is lifting its mobile prices by $2 to $4. Goldman was pleased with the news and believes it will boost its average revenue per user (ARPU) metric by $2.50. It also highlights that this demonstrates that mobile market rationality remains, particularly when combined with the recent Optus increase. In response to the update, the broker has lifted its earnings and dividend estimates for FY 2025 and FY 2026. The Telstra share price is trading at $3.79 at the time of writing.