The Motley Fool

Top brokers name 3 ASX shares to buy

Top brokers up and down Australia have been busy adjusting financial models and recommendations again.

This has resulted in a few shares being given buy ratings. Three that caught my eye are listed below. Here’s why brokers think you should buy them:

Baby Bunting Group Ltd (ASX: BBN)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $2.10 price target after it emerged that Toy R Us Australia has entered voluntary administration after failing to find a buyer. Although the broker acknowledges that another competitor closure could weigh on its performance in the short term due to the negative impact of significant clearance sales, it would be a positive in the longer term. I agree with Morgan Stanley on Baby Bunting and think it could be a great option for patient investors.

Rio Tinto Limited (ASX: RIO)

A note out of the Macquarie equities desk reveals that it has retained its outperform rating and lifted the price target on the mining giant’s shares to $94.00. The broker made the move on the back of reports that Rio Tinto is close to offloading its Grasberg asset. Macquarie believes that a price tag of US$3.5 billion for its Grasberg asset would be a positive result for shareholders. I think that Macquarie is spot on with this one and Rio Tinto would be a great investment option in the resources sector.

Syrah Resources Ltd (ASX: SYR)

Analysts at Credit Suisse have retained their outperform rating and $6.60 price target after the graphite miner announced that it has signed a purchase agreement for an industrial site in Louisiana for its battery anode material plant. Under the terms of the agreement, the purchase price of US$1.225 million is for a 25 acre site with an existing 50,000 square foot industrial building. While I do think that this is a positive for Syrah, I’m not a buyer of its shares just yet. I’d like to wait and see what type of prices the company’s massive Balama project commands before snapping up shares.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


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.