Top brokers name 3 ASX shares to buy today

Brokers across Australia have been as busy as ever adjusting their discounted cash flow models and recommendations to account for new data.

Three shares that have fared well and been given buy ratings are listed below. Here’s why top brokers rate them as buys:

Afterpay Touch Group Ltd (ASX: APT)

According to a note out of Ord Minnett, it has retained its buy rating but cut the price target on Afterpay Touch’s shares to $18.00. Following its strong start to life in the United States, the broker is further convinced about the global appeal of its Afterpay platform with retailers and consumers. In addition to this, the recent ASIC review into the industry is being seen as a positive for the company by the broker. While it certainly is a high-risk investment given the sky-high multiples its shares trade at, I agree that it could prove to be a good one if it makes a success of its U.S. expansion.

Metcash Limited (ASX: MTS)

A note out of Morgan Stanley reveals that it has retained its overweight rating but reduced its price target on this wholesale distributor’s shares to $3.40 following the release of its half year results. While the broker was pleased that its trading performance has continued to improve, it did note that the quality of its earnings was low. However, the broker is optimistic that the easing of the supermarket price war and a turnaround in hardware could be value drivers in the future. While I do think Metcash’s shares look cheap now after their sharp decline, I’m not a big fan of the company and believe investors can find better options elsewhere.

ResMed Inc. (ASX: RMD)

Analysts at Credit Suisse have retained their outperform rating and lifted the price target on ResMed’s shares to $16.10 following the acquisition of Propeller Health for US$225 million. According to the note, the broker is pleased that acquisition provides a data platform for chronic obstructive pulmonary disease, which had been missing from its portfolio in the past. In addition to this, the broker expects the acquisition to widen its customer base. I agree with Credit Suisse on ResMed and think it would be a great investment option.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended ResMed Inc. 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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