Top brokers name 3 ASX shares to buy

With earnings season just around the corner and quarterly updates coming in thick and fast, brokers across Australia have been kept very busy this month.

Three shares that have found favour with brokers and been given buy ratings are listed below. Here’s why they are rated as buys:

Galaxy Resources Limited (ASX: GXY)

According to a note out of Citi, its analysts have retained their buy rating and $4.30 price target on this lithium miner’s shares following the release of its second-quarter update. Yesterday’s update was in-line with the broker’s expectations. Further, its analysts appear pleased to see that plant upgrades will lead to better volumes and grades in the fourth-quarter of FY 2018. I agree with Citi on this one and think yesterday’s update was a solid one. However, with future lithium prices tipped by some to decline, it does make it a high risk investment.

REA Group Limited (ASX: REA)

Analysts at Morgan Stanley have retained their overweight rating and increased the price target on the operator’s shares to $95.00. According to the note, the broker remains positive on the property listings industry despite recent softening. Morgan Stanley expects REA Group to achieve earnings per share of $2.22 in FY 2018, before rising to $2.69 in FY 2019. This means its shares are changing hands at approximately 33x estimated FY 2019 earnings. While this is not cheap and I do have slight concerns over the housing market, I think REA Group would be a good long-term investment.

Regis Healthcare Ltd (ASX: REG)

A note out of UBS reveals that its analysts have retained their buy rating but reduced their price target on this aged care provider’s shares to $4.80. According to the note, the broker believes that 10 new developments will provide incremental earnings contributions of approximately $5 million and $16 million in FY 2019 and FY 2020, respectively. In light of this, UBS has updated its earnings forecasts for Regis accordingly. It expects Regis to achieve earnings per share of 19 cents in FY 2019 and 20 cents in FY 2020. Considering Australia’s ageing population tailwind, Regis could be worth a closer look.

Finally, here are four more buy-rated shares that could be worth snapping up this week.

4 Stocks for Building Wealth After 50

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has recommended REA Group Limited. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.