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:
Adairs Ltd (ASX: ADH)
According to a note out of Morgans, its analysts have retained their add rating and lifted the price target on this homewares retailer's shares to $3.30. Morgans was pleased with Adairs' first half result, which came in ahead of its expectations. It believes this has positioned the company well to achieve the high end of its guidance range in FY 2020. The broker also likes the company for valuation and yield reasons, noting that its shares offer a forward dividend yield of ~6%. I agree with Morgans on Adairs and would be a buyer of its shares.
Inghams Group Ltd (ASX: ING)
Analysts at Goldman Sachs have upgraded this poultry producer's shares to a buy rating with a $4.00 price target following the release of its half year results. According to the note, the broker made the move largely on valuation grounds. It notes that Inghams is trading at a 25% discount to ANZ Food and Ag peers based on its FY 2021 earnings per share estimates. The broker also believes that its input costs could be lower over the next 12 months. And an earnings recovery could be on the way as management works through cost over-runs and processing bottlenecks. I think Goldman makes some good points and it could be worth a closer look.
Nearmap Ltd (ASX: NEA)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but trimmed the price target on this aerial imagery technology and location data company's shares to $2.90. According to the note, Nearmap's first half result was largely in line with its expectations. And while the broker continues to have a few concerns over the stickiness of its product, it remains positive on its overall market opportunity. Macquarie also notes that its increased investment in sales and marketing appears to have been justified following a solid second quarter performance in the United States. I think Macquarie is spot on and Nearmap could be a good option for investors with a high tolerance for risk.
