Leading brokers name 3 ASX shares to buy

The Qantas Airways Limited (ASX:QAN) share price could climb significantly from here according to one broker. Here's why…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Once again brokers from across Australia have been busy running the rule over a number of Australia's leading shares.

Three shares which came out favourably are listed below. Here's why leading brokers think they are in the buy zone:

Qantas Airways Limited (ASX: QAN)

According to a research note out of Citi this morning, its analysts have reiterated their buy rating and increased their price target on the airline's shares from $4.71 to $7.09. Citi believes that a long overdue rerating of Qantas' shares is finally happening. Despite the Qantas share price rallying strongly this year, I would agree with Citi that there is still significant upside potential left. As long as oil prices remain favourable I would class Qantas as a buy.

Santos Ltd (ASX: STO)

A research note out of Credit Suisse reveals that its analysts have upgraded the oil and gas producer to an outperform rating with a $3.80 price target. The broker appears to believe that the impact of the domestic gas security mechanism has been priced into its shares now. This could mean there is upside potential if oil prices rise from here. As I'm not bullish on oil prices I would suggest investors stay clear of Santos. But if you think oil prices will rise then it could be a good resources option.

Tabcorp Holdings Limited (ASX: TAH)

Deutsche Bank has upgraded the gambling and entertainment company's shares to a buy rating with a $4.80 price target. According to the research note Deutsche believes its shares are trading at a discount even before factoring in the potential benefits of its planned merger with Tatts Group Limited (ASX: TTS). Whilst Tabcorp itself isn't a company that appeals to me, I do think that if the merger with Tatts is successful, the combined entity could be worth another look. The Australian Competition Tribunal is expected to decide on the merger by September.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »