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 named as buys this week are listed below. Here’s why they are bullish on them:
Freedom Foods Group Ltd (ASX: FNP)
According to a note out of Goldman Sachs, its analysts have added this diversified food company’s shares to its conviction buy list with an improved price target of $6.80. Goldman was impressed with Freedom Foods’ full year result and believes it is well-positioned for growth thanks to its exposure to high-value dairy nutritionals and locked in long term supply. In addition to this, it believes its plant-based beverages division has attractive long term growth opportunities. I agree with Goldman Sachs on Freedom Foods and think it could be a great investment option.
NEXTDC Ltd (ASX: NXT)
A note out of Citi reveals that its analysts have retained their buy rating and lifted the price target on this data centre operator’s shares to $8.45. According to the note, the broker was pleased with its full year result and particularly its strong pricing. In addition to this, it notes that demand remains strong and its outlook is positive. Though, it suggested that investors will need to be patient and expects earnings growth to accelerate materially in FY 2021. Whilst its valuation makes it a reasonably high risk share, I believe NEXTDC is well-positioned for long term growth and could be a good buy and hold option for patient investors.
Sezzle Inc (ASX: SZL)
Analysts at Ord Minnett have retained their buy rating and lifted the price target on this buy now pay later company’s shares to $3.15 following its half year result. According to the note, the broker was pleased with its strong customer growth in the key North American market. As of July 31, total active customers had increased to a sizeable 496,307. Ord Minnett appears encouraged by this and the overall positive trends being seen in the North American market. Whilst I thought Sezzle delivered a strong update, I intend to wait and see how it performs over the next 12 months before considering an investment.
Where to invest $1,000 right now
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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia has recommended Freedom Foods Group 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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