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Brokers name 3 ASX shares to buy today

James Mickleboro
Stock market, ASX, investing

A large number of broker notes have hit the wires this week, leading to many popular shares being declared buys and sells.

Three shares that are in favour with brokers and have been given a buy rating are listed below. Here’s why they are bullish on them:

Ansell Limited (ASX: ANN)

According to a note out of Credit Suisse, its analysts have upgraded this personal care products company’s shares to an outperform rating from neutral and lifted the price target on them to $27.50. The broker made the move after the price of raw materials eased. The broker expects the company to benefit from this slightly in the second half, but notably more in FY 2020. This is likely to lead to solid earnings growth next year for Ansell according to the broker. While I’m not a big fan of Ansell, I think this could be a good call by Credit Suisse.

Aristocrat Leisure Limited (ASX: ALL)

Analysts at Morgans have retained their add rating and lifted the price target on this gaming technology company’s shares to $31.95 following the release of its half-year results. On Thursday, Aristocrat Leisure reported operating revenue of $2,150.3 million and normalised EBITA of $644.4 million. This was an increase of 29.8% and 16.8%, respectively, on the prior corresponding period. According to the note, this result was ahead of the broker’s expectations. It also adjusted its earnings forecasts favourably to reflect the weaker Australian dollar. I agree with Morgans on Aristocrat Leisure and consider it a strong buy.

Reliance Worldwide Corporation Ltd (ASX: RWC)

A note out of Morgan Stanley reveals that its analysts have initiated coverage on this plumbing parts company’s shares with an overweight rating and $5.00 price target. According to the note, the broker believes that the company’s issues this year are one-offs and that it is positioned to deliver solid growth over the medium term. In light of this, it sees the recent selloff of its shares as a buying opportunity for investors. I think Morgan Stanley is spot on with this one.

Looking for more buy ideas? Then check out these five buy-rated ASX shares that have been tipped as market beaters.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Ansell Ltd. and Reliance Worldwide Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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. 2019