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:
Audinate Group Ltd (ASX: AD8)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $10.30 price target on this digital Audio-Visual networking technology provider following its investor day event. The broker left the event feeling even more confident in the company’s prospects thanks to its competitive advantage and long-term growth opportunity. Morgan Stanley also appears confident in Audinate’s opportunity in the video market. I agree with the broker and believe it is one of the best small cap shares on the ASX.
Rio Tinto Limited (ASX: RIO)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $102.00 price target on this mining giant’s shares. According to the note, the broker has lifted its iron ore shipment forecast for 2019 and slightly reduced it for 2020. Overall, Macquarie remains positive on Rio Tinto and notes that spot prices are currently notably higher than those used for its earnings estimates in 2020 and beyond. This means that if iron ore prices remain at these levels for longer, then positive revisions may be necessary for its earnings forecasts. I think Rio Tinto would be a great option for investors looking for exposure to the resources sector.
Scentre Group (ASX: SCG)
Analysts at Goldman Sachs have retained their buy rating and lifted the price target on this shopping centre-focused property group’s shares to $4.29. According to the note, the broker made the move after the purchase of 50% of Garden City Booragoon for $570 million. Goldman appears happy with the deal and estimates that it is ~1% per annum accretive to FFO per share for Scentre. I agree with Goldman and would be a buyer of its shares. Especially if I were an income investor. Goldman estimates that its shares offer a FY 2020 distribution yield of 6%.
Where to invest $1,000 right now
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended Scentre Group. 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.