With so many shares to choose from on the Australian share market, it can be hard to decide which ones to buy.
The good news is that brokers across the country are doing a lot of the hard work for you.
Three top shares that leading brokers have done the research on and named as buys this week are listed below. Here's why they are bullish on them:
Premier Investments Limited (ASX: PMV)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted the price target on this retailer's shares to $17.69 following the release of its first half results. Credit Suisse was pleased with the company's performance in the first half and particularly its online sales growth. In addition to this, the broker believes the market doesn't appreciate the significant growth opportunity the Smiggle business has online and in the wholesale channel. I think Credit Suisse is spot on and feel Premier Investments would be a good option for investors.
REA Group Limited (ASX: REA)
A note out of Morgans reveals that its analysts have retained their add rating and $89.57 price target on this property listings company's shares. According to the note, the broker has noted that new for sale listings in Australian capital cities have continued to slide. The broker suspects this will lead to lower demand for depth listings in the second half and impact earnings. However, an increase in the valuation of the company's U.S. Move Inc business means the broker has held firm with both its rating and price target. I agree with Morgans on REA Group and believe any share price weakness due to the property market downturn is a buying opportunity for patient investors.
St Barbara Ltd (ASX: SBM)
Analysts at Goldman Sachs have upgraded this gold producer's shares to a buy rating with a revised price target of $3.90. According to the note, although Goldman has downgraded its forecasts to reflect the company's decision to not proceed with its hydraulic hoisting solution known as Gwalia Mass Extraction, it believes the selloff of its shares last week has created a buying opportunity. Especially considering they now trade at 0.9x NAV, compared to its peer group average of 1.1x NAV. If you're looking for exposure to gold then I agree that St Barbara could be worth considering.
