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:
Coles Group Ltd (ASX: COL)
Analysts at the Macquarie equities desk have upgraded this supermarket giant's shares to an outperform rating with a $17.20 price target. According to the note, the broker believes the market selloff has left Coles trading at a very attractive level. It believes Coles is a high quality asset and was pleased to see the company gaining market share during the early weeks of 2020. I agree with Macquarie on Coles and feel it would be a great option for investors.
Freedom Foods Group Ltd (ASX: FNP)
According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating on this diversified food company's shares but trimmed the price target on them to $6.25. Following the release of its half year results, Goldman Sachs believes the company is largely on track to deliver on its expectations over the coming years. The broker has pencilled in a 50% EBITDA CAGR from FY 2019 to FY 2022. This is based largely on the growth of both nutritional dairy and plant based beverages, supported by a positive long-term macro outlook. I think Goldman Sachs is spot on and Freedom Foods could be a great long term pick.
NEXTDC Ltd (ASX: NXT)
Another note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted the price target on this data centre operator's shares to $8.70. Although NEXTDC's contract performance in the first half was softer than it expected, it was pleased with its sales and EBITDA growth. It was also pleased with the company's positive contract outlook, noting that management is in advanced discussions regarding a number of contracts. This is expected to result in the strongest ever sales performance during the second half. I agree with Goldman Sachs on this one as well and believe NEXTDC is a great way to play the cloud computing boom.
