Leading brokers name 3 ASX shares to buy

The Macquarie Group Ltd (ASX:MQG) share price is one of three tipped to climb higher in 2018 by brokers…

| 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

Yesterday I had a look at a number of shares which were given sell ratings by leading brokers this week.

Today I thought I would look at the shares which have found favour with brokers and been given buy ratings or equivalents. Here are three which caught my eye:

Macquarie Group Ltd (ASX: MQG)

According to a note out of UBS, its analysts have retained their buy rating and $103 price target on the investment bank's shares. Although the broker is reasonably pessimistic on the Australian banking sector due to falling house prices and slowing growth, Macquarie is its first pick in the sector. Whilst I would prefer to buy its shares are at a lower price, I feel Macquarie is a good option for income investors at the current price.

South32 Ltd (ASX: S32)

Analysts at Morgan Stanley have upgraded the miner to an overweight rating from equal weight and increased the price target on its shares to $3.75. Its analysts have made the move after making revisions to their commodity price forecasts. The broker expects to see improvements in the prices of coal, manganese, and aluminium, leading to a stronger than previously expected performance from South32 in FY 2018 and FY 2019. Although it wouldn't be my first pick in the sector, I do think South32 could be worth a look if commodity prices continue to improve.

Transurban Group (ASX: TCL)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and increased the price target on the toll road company's shares to $13.20. The broker appears to believe that the West Gate Tunnel project will provide a strong return for the company. I'm a big fan of Transurban and its near monopoly on toll roads in Australia. As a result, I would agree with Credit Suisse that it has the potential to outperform over the next 12 months.

Motley Fool contributor James Mickleboro has no position in any of the 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 »