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Leading brokers name 3 ASX shares to buy

Last week was yet another busy one filled with results, trading updates, and presentations at the Macquarie Group Ltd (ASX: MQG) Australia conference.

Unsurprisingly, this was a busy period for brokers with a great number of notes hitting the wires.

This has continued through to today and three shares which have given buy ratings are listed below. Here’s why brokers think they are in the buy zone:

Sims Metal Management Ltd (ASX: SGM)

A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $19.45 price target on the scrap metal company’s shares following the release of U.S. Census Bureau ferrous scrap export data. According to the note, scrap exports grew strongly in the March quarter thanks to growing global demand. The broker expects these positive trends to continue, leading to strong profit growth for Sims Metal Management in FY 2018 and FY 2019. I think Goldman could be spot on with this one.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Analysts at Goldman Sachs have also reiterated their buy rating on Sydney Airport’s shares. In addition to this, the broker has increased its price target on the airport operator’s shares by 5% to $8.00, representing upside of approximately 13% from the last close price. According to the note, the company’s investor day event highlighted Sydney Airport’s strong position to benefit from increasing international tourism over the next decade and its flexibility to capture additional revenue streams associated with these visitors. While I do have concerns over rising bond yields and the impact this could have on “bond proxies” like Sydney Airport, I do think it could be a good option for income investors.

WiseTech Global Ltd (ASX: WTC)

According to a note out of Citi, its analysts have upgraded the logistics software platform provider’s shares to a buy rating with an improved price target of $14.12. The broker made the move on the back of the expanding multiples of its industry peers and increased confidence in the company’s growth prospects. Citi expects WiseTech to benefit from the integration of its numerous acquisitions and new product developments. While I am a huge fan of the company, I would prefer to buy in at a cheaper price.

Lastly, here are three more buy-rated shares to snap up this week if you don't already own them.

Top 3 Growth Shares To Buy in May

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of WiseTech Global. 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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