Leading brokers name 3 ASX shares to buy

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

The good news is that brokers up and down Australia have been trying to make life easier by picking out shares to buy.

Three shares which have been given buy ratings this week are listed below. Here’s why they are rated as buys:

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $55.00 price target on the pizza chain operator’s shares. Its analysts appear to be feeling far more confident in the company’s long-term growth prospects in the European market following a visit to its operations on the continent. From what it has seen in the Netherlands market. which is the most penetrated country for online food ordering, Morgan Stanley believes Domino’s can excel despite the rise of online food aggregators. I agree with the broker that it is a buy, however, I suspect it could be a bumpy ride over the next 12 months.

James Hardie Industries plc (ASX: JHX)

A note out of Credit Suisse reveals that its analysts have upgraded the building products company’s shares to an outperform rating from neutral and given them a $24.75 price target. According to the note, the broker believes that numerous factors are pointing to U.S. housing and renovation activity remaining robust. This includes recent sales beats by leading building and renovation products retailers. Whilst it isn’t a company that I typically find attractive, it could be worth following Credit Suisse’s advice on this one.

OZ Minerals Limited (ASX: OZL)

Analysts at Citi have retained their buy rating and $11.10 price target on the copper producer’s shares. According to the note, Citi is pleased with the company’s plan to commission a new power line to its Prominent Hill and Carrapateena mines in South Australia. As OZ Minerals was due to stop using a line owned by BHP Billiton Limited (ASX: BHP) in 2020, this news removes a key risk that had weighed on its South Australian operations. As I’m bullish on the global economy I believe copper demand will remain strong which should lead to favourable prices and strong margins for OZ Minerals. This could make it a good pick in the resources sector.

Finally, here are a few more top shares that I think brokers would class as strong buys today.

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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 Scott Phillips.

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