The market may be having a tough time this week, but that hasn’t stopped the broker recommendations from flooding in.
Below are three shares that top brokers have named as buys this week. Should you buy them?
Australia and New Zealand Banking Group (ASX: ANZ)
According to a note out of Citi, it has retained its buy rating and $30.50 price target on the banking giant’s shares. The broker has held firm with its recommendation despite the bank revealing that its FY 2018 profits would be hit by costs relating to customer compensation and the Royal Commission. Due to ANZ Bank’s strong CET1 ratio, the broker doesn’t appear concerned by these costs which had largely been expected by the market. I agree with Citi on ANZ Bank and think it is a great option after recent share price declines
NEXTDC Ltd (ASX: NXT)
A note out of UBS reveals that its analysts have retained their buy rating and $9.30 price target on this data centre operator’s shares after it announced plans to acquire its landlord Asia Pacific Data Centre Group (ASX: AJD). According to the note, if the acquisition goes ahead then the broker expects it to be positive for its FY 2019 profits, but less so over the medium term. I agree with UBS on NEXTDC and feel that the cloud computing boom makes it a great buy and hold option.
Regis Healthcare Ltd (ASX: REG)
Analysts at Ord Minnett have retained their buy rating on this aged care operator’s shares but slashed the price target on them to $3.30. While the broker feels that the Royal Commission into the aged care sector will weigh heavily on investor sentiment, it still sees value in Regis’ shares at these levels. It believes Regis is the highest quality operator in the sector and expects its recently opened facilities to support its cash flows. While I agree that Regis is a quality operator, I’m staying well clear of the sector until after the inquiry, as you never know what will be uncovered.
And here's a fourth ASX share that has been given a buy rating this month.
Discover why this legendary Australian stock-picker just issued a “Double Down” buy alert to his exclusive group of insiders… and why he’s convinced this might be the single most attractive entry point for years to come.
Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. 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.