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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:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Macquarie, its analysts have retained their outperform rating and $50.50 price target on this gaming technology company’s shares. The broker highlights that Aristocrat is looking into the potential sale of its Plarium and Big Fish digital gaming businesses. Macquarie believes this would be a smart move and could command a sale price of up to US$1.18 billion based on peer valuations and the popularity of its RAID: Shadow Legends game. Macquarie sees the potential sale as a positive and expects it to support a re-rating of its shares. Particularly given that it will allow management to focus more on its core business and growing social casino and real money gaming businesses. The Aristocrat Leisure share price is trading at $43.45 this afternoon.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
A note out of Citi reveals that its analysts have upgraded this pizza chain operator’s shares to a buy rating with a $44.50 price target. The broker has become more positive on the struggling company after it laid out its plans to address its underperformance in the European market. Citi notes that the company’s excessive discounting has cheapened the brand and Domino’s failed to localise its offer. However, it thinks that Domino’s agreement to allow third-party delivery via aggregator services should lead to higher volumes. It also sees potential for the brand to outperform across a European summer that includes Euro 2024 and the Paris Olympics. The Domino’s share price is fetching $36.56 on Wednesday.
Pro Medicus Limited (ASX: PME)
Analysts at Goldman Sachs have reiterated their buy rating on this health imaging technology company’s shares with an improved price target of $136.00. Goldman highlights that Pro Medicus has won five new contracts with a minimum value of $45 million. It notes that this brings the company’s minimum total contract value (TCV) for new sales this financial year to $245 million. Goldman believes this supports its view that the company’s Visage 7 software is an industry leading solution and that Pro Medicus is the incumbent technology leader in radiology and well-placed to take market share. The Pro Medicus share price is trading at $115.28 today.