Leading brokers name 3 ASX shares to buy

Once a week I like to take a look at which shares leading brokers across Australia are recommending investors buy and sell.

Following recent developments and share price movements, the three shares below have found favour with brokers. Here’s why they have given them buy ratings:

BT Investment Management Ltd (ASX: BTT)

According to a note out of the Macquarie equities desk, its analysts have upgraded this leading fund manager to an overweight rating with a $12.05 price target. Macquarie appears to be impressed with BTIM’s fund inflows this year which have outperformed its 5% performance benchmark. Furthermore, a reasonably sharp drop in its share price has left it at an attractive level to make an investment according to the note. Whilst I would agree that BTIM looks to be good value for money, I plan to stay away for the time being due to concerns over how the Brexit may impact its business.

Incitec Pivot Ltd (ASX: IPL)

Analysts at UBS have upgraded this leading industrial explosives, chemicals, and fertilizers company to a buy rating with a $4.00 price target. The broker believes that the bottoming of fertilizer prices and its work on cost controls has put it in a favourable position. If fertilizer prices have bottomed then Incitec Pivot could prove to be a good investment. But with its shares trading at 23x trailing earnings, I wouldn’t be in a rush to buy shares just yet.

Treasury Wine Estates Ltd (ASX: TWE)

A note out of Morgan Stanley this morning reveals that its analysts have reiterated their overweight rating and $14.00 price target on this leading wine company’s shares. According to the note, Morgan Stanley believes that its 2016-17 vintages provide it with a strong earnings outlook that should offset weaker 2014-15 vintages. Furthermore, the investment bank is bullish on its prospects in Asia, believing that its Asia business is still in its infancy and has significant room to grow. I would have to agree with Morgan Stanley on this one. As well as this, I believe the premiumisation strategy it has taken has been a masterstroke which will result in strong long-term earnings growth and much wider margins.

Finally, here's one hot dividend stock which I believe could be classed as a strong buy today.

NEW! Dividend expert names his top ASX income stock for 2017-18

You probably don't know this market leader, but it's making waves in Asia and already boasts a term-deposit-crushing dividend of almost 5%. A debt free balance sheet and dominant market position at home and abroad mean this company offers investors income and some real-deal growth potential.

Simply click here to discover the name, code and a full investment analysis in our brand-new FREE report, "The Motley Fool's Top Dividend Stock for 2017-18."

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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