Leading brokers name 3 ASX shares to buy

The AMP Limited (ASX:AMP) share price is one of three tipped to climb higher by leading brokers…

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Brokers across Australia have been as busy as ever adjusting their financial models and recommendations after new data became available.

Three shares that have come out of this well and been given the much-coveted buy rating are listed below. Here's why they are tipped as buys:

Amcor Limited (ASX: AMC)

According to a note out of Morgan Stanley, its analysts have upgraded this packaging company's shares to an overweight rating from equal-weight with an increased price target of $15.80. The broker made the move on the belief that Amcor's outlook is far better than the market is pricing in. Although it acknowledges that FY 2018 is going to be a disappointment, it expects the headwinds that have held it back to ease over the next 12 months. I think Morgan Stanley could be onto something here. However, I would suggest investors wait for its results and see what management has to say about FY 2019.

AMP Limited (ASX: AMP)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating on the embattled financial services company's shares with a slightly reduced price target of $4.50. The broker has held firm with its rating after AMP announced its plans to reset the business last week. Though it is worth noting that one slight concern the broker has is how much damage the Royal Commission has done to its brand. It is for this reason that I wouldn't be a buyer just yet. Instead I would wait for improvements before considering it as an investment.

BHP Billiton Limited (ASX: BHP)

Analysts at UBS have retained their buy rating and $37.00 price target on this mining giant's shares following the sale of its onshore US shale assets. The broker appears to be pleased with the sale and its plans to return funds to shareholders. In addition to this, earlier this month the broker was pleased with its FY 2018 production results and was particularly impressed with its iron ore and petroleum production. I would agree with UBS on BHP and think it is a great option for investors looking to gain exposure to the resources sector.

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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