In a market teeming with options, selecting the right shares to invest in can be daunting. Fortunately, leading brokers across Australia have pinpointed three standout ASX shares that they recommend as buys this week. These recommendations come with detailed insights into why these shares are poised for growth.
Betr Entertainment Ltd (ASX: BBT)
According to a recent note from Morgans, analysts have maintained their buy rating on Betr Entertainment Ltd, a sports betting company, albeit with a slightly reduced price target of 38 cents. Morgans expressed satisfaction with Betr’s performance in the fourth quarter, noting that the company exceeded expectations in both turnover and gross win.
One of the key highlights for Morgans was Betr’s ability to maintain a net win margin above 10%, even after integrating the lower-margin TopSport customer base. With ongoing product enhancements, Morgans anticipates increased scale and incremental margin expansion as Betr heads into the lucrative racing and sports finals season. As of Monday, Betr’s share price is trading at 31 cents.
Electro Optic Systems Holdings Ltd (ASX: EOS)
Bell Potter has also retained its buy rating on Electro Optic Systems Holdings Ltd, a company involved in defense and space technology, with an upgraded price target of $3.75. The broker was particularly impressed with the company’s second-quarter update, which showcased robust operating cash flow following the finalization of a significant contract.
Looking forward, Bell Potter anticipates substantial contract awards in the latter half of 2025, including the potential HELW contract. This contract is seen as strategically significant, not just in terms of value but as a driver of long-term growth. Consequently, Bell Potter has increased the multiple used in its EV/EBITDA valuation to 30x to reflect this potential. At present, EOS shares are priced at $2.94.
ResMed Inc. (ASX: RMD)
Analysts at Citi have reiterated their buy rating for ResMed Inc., a company specializing in sleep disorder treatments, with an enhanced price target of $49.00. The company delivered a full-year result slightly ahead of expectations for FY 2025, driven by stronger-than-anticipated revenue and gross margins.
With management forecasting higher margins for FY 2026, Citi is optimistic about ResMed’s outlook over the next 12 months, suggesting that it might outperform market expectations. Currently, ResMed’s share price stands at $42.98.
Market Context and Expert Opinions
The recommendations from these brokers come at a time when the Australian stock market is navigating post-pandemic recovery and global economic uncertainties. According to financial analysts, the focus has shifted towards companies that demonstrate resilience and potential for growth despite market volatility.
Dr. Jane Thompson, a market analyst with over two decades of experience, notes,
“Investors are increasingly looking for companies that not only show strong financials but also have strategic growth plans. The recommendations for Betr, EOS, and ResMed reflect a broader trend of seeking out firms with robust business models and future growth potential.”
Implications for Investors
For investors, these broker recommendations provide a strategic insight into potential investment opportunities. The focus on companies with strong performance metrics and strategic growth plans aligns with a broader investment strategy that seeks to balance risk and reward.
As the market continues to evolve, investors will need to stay informed and agile, adapting to new information and market conditions. The insights provided by leading brokers can serve as a valuable resource in navigating this complex landscape.
Looking ahead, investors will be keenly watching the performance of these recommended shares, particularly as they approach key financial milestones and contract negotiations. The potential for growth in these companies could set a precedent for future investment trends in the ASX market.
