MENU

Top brokers name 3 ASX shares to buy today

April certainly has been a busy month filled with countless quarterly and trading updates.

Unsurprisingly, this has kept many of Australia’s leading brokers busy adjusting their estimates and recommendations accordingly.

Three that have fared well and been given buy ratings are listed below. Here’s why brokers like them:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Credit Suisse, it has retained its outperform rating and $5.75 price target on the iron ore producer’s shares following its recent quarterly update. Although the broker acknowledges that Fortescue will need to deliver a strong June quarter to meet its guidance, it sees a lot of value in its shares regardless. Furthermore, it notes that the realised price of its ore is slowly improving. While it wouldn’t be my first pick in the space, I do agree that there is a lot of value in Fortescue’s shares. Especially after management advised that it is confident demand for its low grade ore will pick up from Chinese steel producers now their margins have peaked.

G8 Education Ltd (ASX: GEM)

A note out of Morgans reveals that it has retained its add rating but cut the price target on the childcare operator’s shares from $3.53 to $3.07. While the broker believes that trading conditions could be difficult in the short term, it expects things to ease in the medium term. In light of this, its analysts have held firm with their add rating following its recent trading update. While I do think G8 Education’s shares look cheap, I would stay clear of them. I’m not convinced that a turnaround is coming any time soon and wouldn’t be surprised to see its shares sink lower. Especially if its weak financial performance puts pressure on its dividend.

Metcash Limited (ASX: MTS)

Analysts at Morgan Stanley have retained their overweight rating and lifted the price target on the wholesale distributor’s shares to $4.00 from $3.40. According to the note, the broker believes that the market has not factored in the robust growth of its hardware business. In addition to this, its research indicates that supermarket price wars are easing and trading conditions have improved. Because of this, the broker has forecast FY 2018 earnings per share of 23 cents, 1 cent ahead of the market’s expectations. Based on Morgan Stanley’s forecast, Metcash’s shares are changing hands at under 15x full-year earnings. This could make it worth a closer look.

Three More Buy Rated Shares To Snap Up Today

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can 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 2018."

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%.

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.

Click here to claim your free report.

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!