Brokers name 3 ASX shares to buy today

Australia and New Zealand Banking Group (ASX:ANZ) shares are one of three that brokers have tipped as buys this week…

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It certainly has been a busy week for the Australian share market. A market meltdown, results releases, and annual general meetings have kept investors and brokers on their toes.

In respect to the latter, listed below are three broker notes that caught my eye. Here's why brokers have buy ratings on these shares:

Australia and New Zealand Banking Group (ASX: ANZ)

According to a note out of Goldman Sachs, it has retained its conviction buy rating and $31.52 price target on this banking giant's shares. Following the recent bank earnings season, ANZ Bank remains the broker's preferred pick. This is because it believes it is best positioned to face into the sector's slowing revenue environment due to further absolute cost reduction opportunities, potential reduction of its share count as it deploys surplus capital via buybacks, and lower bad and doubtful debt charges thanks to the structural shift of its portfolio. I agree that ANZ Bank would be a good investment if you don't already have exposure to the bank.

Nearmap Ltd (ASX: NEA)

Analysts at Morgan Stanley have retained their overweight rating and $2.00 price target on this geospatial map company's shares following its annual general meeting on Thursday. According to the note, the broker is pleased with the strong start to FY 2019 that Nearmap has had in Australia and the United States. All in all, Morgan Stanley believes that the company is on course to hit its FY 2019 forecasts at present. While it certainly is high risk, I do feel that Nearmap could be a great long-term investment option for investors.

Xero Limited (ASX: XRO)

Another note out of Morgan Stanley reveals that it has retained its overweight rating and $50.00 price target on this accounting software company's shares. According to the note, the broker has looked into the company's U.S. prospects and doesn't believe it will be a major winner in the market. However, it doesn't feel that it needs to be in order to justify its share price. Morgan Stanley believes that success in other international markets and the ANZ market will be enough to drive its share price higher in the medium term. I think that the broker makes a fair point on its U.S. expansion and would still consider Xero a good long-term investment option.

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 Xero. 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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