Leading brokers name 3 ASX shares to buy today

Fortescue Metals Group Limited (ASX:FMG) shares are one of three that leading brokers have tipped as buys…

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Brokers up and down Australia have been busy adjusting their estimates and discounted cash flow models again this week.

This has led to a number of broker notes being released. Three buy ratings that caught my eye are summarised below. Here's why brokers are bullish on them:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Ord Minnett, its analysts have upgraded this iron ore producer's shares to a buy rating and lifted the price target on them to $7.30. The broker has made the move after increasing its iron ore price forecasts due to its belief that Vale's production could be disrupted for around three years. Further, although its shares have rallied strongly in 2019, its analysts don't believe it is too late to invest given the narrowing of the discount between low grade iron ore and benchmark 62% fines. If iron ore prices remain elevated over the medium to long term then it could prove to be a good investment. For now, though, I would class it as a hold after its strong run.

Nufarm Limited (ASX: NUF)

A note out of Deutsche Bank reveals that its analysts have upgraded the shares of this crop protection and specialist seeds company to a buy rating with a $6.00 price target. According to the note, the broker has made the move largely on valuation grounds after the Nufarm share price sank to a 52-week low last week. Deutsche points out that its shares are trading significantly lower to both historical averages and its peers. Whilst it isn't necessarily a share that I would buy, it does admittedly look cheap at these levels.

QBE Insurance Group Ltd (ASX: QBE)

Analysts at Morgan Stanley have retained their overweight rating and $13.00 price target on this insurance giant's shares. According to the note, the broker believes that the insurer's business momentum is the strongest it has been in many years. Furthermore, it expects improvement in its margins from cost reductions and portfolio remediation. Combined, it suspects the market could become positive on its outlook and re-rate its shares. Whilst I'm not a fan of insurance companies, if QBE can get things right it could prove to be a good investment.

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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