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Top brokers name 3 ASX shares to buy today

Many of Australia’s top brokers have been busy adjusting their recommendations this week in response to recent developments.

Three shares that have fared well and been given buy ratings are listed below. Here’s why they are in favour with brokers:

Caltex Australia Limited (ASX: CTX)

According to a note out of Credit Suisse, its analysts have held firm with their outperform rating but cut the price target on the fuel retailer’s shares slightly to $32.79 following yesterday’s guidance update. Although the broker notes that Caltex faces refiner margin uncertainty and volatility, it believes that this has been baked into its share price. In addition to this, Credit Suisse appears optimistic on the company’s exposure to the convenience market and sees this as a potential driver of growth in the coming years. I agree with Credit Suisse on Caltex and think it would be a good option at the current price.

Carsales.Com Ltd (ASX: CAR)

Analysts at Ord Minnett have retained their buy rating but cut the price target on this car listings company’s shares to $14.40 after it announced the potential impairment of its investment in Stratton Finance Group. Carsales expects to make a non-cash charge of $48 million against its investment due to softness in car financing and additional regulatory attention. While this is disappointing, the broker remains bullish on the company due to its solid core business and international growth opportunities. While it wouldn’t be my first pick in the industry, I do think it is attractively priced for a long-term investment.

Rio Tinto Limited (ASX: RIO)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $94.00 price target on this mining giant’s shares after its completed the sale of its Dunkerque aluminium smelter to Liberty House for $500 million. According to the note, the broker believes this and the potential sale of its Grasberg asset has put Rio Tinto in a position to return even more cash to shareholders in 2019 than expected. I think Rio Tinto is one of the best options in the resources sector right now and agree that it is a share to buy.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com 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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