Why leading brokers just upgraded these 3 ASX shares

As always a number of brokers across Australia have been busy reevaluating shares as new data becomes available.

Whilst not all shares have fared so well, the following three shares have found favour with leading brokers this week:

Charter Hall Group (ASX: CHC)

Analysts from Morgan Stanley have upgraded the real estate investment trust to an overweight rating with a $5.65 price target. According to the release the investment bank expects Charter Hall to deliver strong growth in free funds from operations in the medium term thanks to its office portfolio. Whilst Charter Hall is an attractive option because of its generous dividend, I have concerns that its retail portfolio could weigh heavily on its results. In light of this you won’t find me buying at the current share price.

Fortescue Metals Group Limited (ASX: FMG)

Morgan Stanley has also upgraded this leading iron ore miner to an equal-weight rating with a $6.30 price target. The research note reveals that its analysts believe that following the recent weakness in iron ore prices, the Fortescue Metals share price has fallen to what it deems to be fair value. Whilst I agree that the miner is far more attractive at current prices, I still believe iron ore prices have the potential to fall significantly over the next 12 months. As this could drag its shares lower, I think investors would be better off holding tight.

Myer Holdings Ltd (ASX: MYR)

Ahead of its half-year results release on Thursday, analysts at Citi have reiterated their buy rating and $1.40 price target on the department store operator’s shares. Citi expects Myer to report a 2.2% increase in like-for-like sales, thanks largely to strong Christmas trading. I have been impressed with Myer’s turnaround and wouldn’t be surprised to see it deliver on Citi’s expectations. Considering short interest dropped sharply this week, it appears many in the market could be expecting a solid result.

Whilst I'm not entirely convinced with the three picks above, I certainly am convinced that these three hot growth stocks would be great investments today.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often full franked..

But knowing which blue chips to buy, and when, can often be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

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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.

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