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Top brokers name 3 ASX shares to buy next week

With so many shares to choose from on the Australian share market, it can be hard to decide which ones to buy.

To help you on your way I’ve picked out three bullish broker notes that caught my eye last week. Here’s why I think they could be worth acting on next week:

ARB Corporation Limited (ASX: ARB)

According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and cut the price target on this 4×4 car accessories company’s shares slightly to $22.00 following its annual general meeting. Although ARB reported slower sales growth in the September quarter compared to the prior corresponding period, the broker sees a lot of value in its shares at this level. In addition to this, it expects unfavourable currency movements to be offset by price increases and for ARB to strengthen its position in the massive U.S. market. I agree with Macquarie on ARB and think it could be a great buy and hold investment.

Nearmap Ltd (ASX: NEA)

Analysts at Morgan Stanley have retained their overweight rating and $2.00 price target on this geospatial map provider’s shares. According to the note, the broker believes that Nearmap is experiencing improved economics for both its U.S. and Australian businesses. As a result, it is confident that the company will hit its FY 2019 forecasts. In addition to this, Morgan Stanley has suggested that the tech selloff has created an attractive entry point for investors. I agree with the broker on Nearmap, especially given that it only recently raised $70 million through a placement of shares to institutional investors at $1.60 per share.

Super Retail Group Ltd (ASX: SUL)

A note out of Morgans reveals that its analysts have upgraded this retailer’s shares to an add rating from hold and lifted the price target on them to $10.44. According to the note, the broker is confident that Super Retail will deliver a 10.9% increase in EBITDA in FY 2019. This, it suggests, will allow the company to pay down its debt significantly, putting it in a position to increase its payout ratio in the future. I think Morgans makes some great points and feel Super Retail would be a great option for income investors.

As well as Super Retail, I think this growing dividend share could be a great option for income investors.

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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 Nearmap Ltd. The Motley Fool Australia owns shares of Super Retail Group Limited. The Motley Fool Australia has recommended ARB 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.

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