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Top brokers name 3 ASX shares to buy today

Brokers have been busy this week adjusting their financial models and recommendations following the Christmas break.

Three shares that have fared well and been given buy ratings are listed below. Here’s why brokers are bullish on them:

Baby Bunting Group Ltd (ASX: BBN)

According to a note out of Citi, its analysts have retained their buy rating and $2.65 price target on this baby products retailer’s shares. The broker has been busy looking into retail sales over the Christmas period and believes that trading conditions in the discretionary space were somewhat divergent. One retailer that it expects to have done well during the period is Baby Bunting, giving it the confidence to maintain its buy rating. Citi has previously stated its belief that Baby Bunting’s operating earnings guidance for FY 2019 is conservative. I agree with thee broker on Baby Bunting and think it would be a great option for investors looking for exposure to the retail sector.

Magellan Financial Group Ltd (ASX: MFG)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted the price target on this fund manager’s shares to $29.50 following the release of its latest funds under management (FUM) update. Although Magellan reported a 1.8% decline in FUM, this was 2.6% higher than what Goldman had estimated. In addition to this, performance fees of $42 million were materially better than the broker’s expectations. I think Magellan’s shares are trading at an attractive level for investors right now and are well worth considering.

Woodside Petroleum Limited (ASX: WPL)

Analysts at Morgans have upgraded this energy producer’s sharers to an add rating from hold and lifted the price target on them to $37.83. According to the note, the broker has made the move after modelling higher oil price forecasts into the equation this year. In addition to this, the broker believes that the quality of Woodside Petroleum’s earnings is being support by its low risk operations. Based on Morgans’ earnings forecasts for FY 2019, Woodside Petroleum’s sharers are changing hands at 10x earnings. This could make it worth considering if oil prices continue to rise a little more and then stabilise.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

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