Australia Markets close in 5 hrs 6 mins

Leading brokers name 3 ASX shares to buy today

James Mickleboro

With so many shares to choose from on the Australian share market, it can be hard to decide which ones to buy.

The good news is that brokers across the country are doing a lot of the hard work for you.

Three top shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Goldman Sachs, its analysts have retained their buy rating and NZ$16.50 (A$15.60) price target on this infant formula and fresh milk company’s shares after reviewing the latest Taobao and Tmall sales data. Goldman’s research indicates that infant formula sales as a whole were down 5% in April, but this didn’t stop a2 Milk Company from delivering strong sales growth during the month. The broker estimates that Tmall sales grew 269% on the prior corresponding period, leading to strong market share gains. I would agree with Goldman on a2 Milk Company and feel it could be a great buy and hold option.

National Australia Bank Ltd (ASX: NAB)

Analysts at Morgan Stanley have upgraded this banking giant’s shares from an equal-weight rating to overweight with an improved price target of $25.70. According to the note, the broker likes NAB due to the performance of its retail and business banking operations and its decision to cut its dividend. Furthermore, it believes the surprise Federal election result has lowered risks relating to credit quality and the mortgage market. I think Morgan Stanley is spot on and would agree that its shares are a buy.

Qantas Airways Limited (ASX: QAN)

Another note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $6.91 price target on this airline operator’s shares following the release of the Bureau of Infrastructure, Transport and Regional Economics (BITRE) domestic airfare data for the month of May 2019. During May there has been an 8% decline in “best discount” fares. However, this was largely expected due to a need to offset moderating demand from softening consumer sentiment and the Federal election. In light of this, the broker remains positive on Qantas and reiterates its buy rating. I agree with Goldman Sachs and think Qantas would be a good option for investors.

Looking for more buy ideas? Then check out these hot stocks which are too cheap to ignore.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

Stock #1 is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Stock #2 is another high-growth business trading near a 52-week low all while offering a 4.7% grossed-up yield...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk and National Australia Bank 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