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:
Australia and New Zealand Banking Group (ASX: ANZ)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating but cut the price target on this banking giant’s shares down to $19.50. The broker has been looking at the banking sector and believes the general outlook has shifted significantly in recent weeks. This is due to falling interest rates, potential increasing bad debts, and lower pricing power. As a result, it has taken an axe to its earnings forecasts for the big four. However, due to recent share price weakness, it still sees value in ANZ’s shares at the current level. I would agree with Morgan Stanley on this one.
Corporate Travel Management Ltd (ASX: CTD)
Analysts at Credit Suisse have retained their outperform rating but halved the price target on this corporate travel specialist’s shares to $12.00. The broker made the move after Corporate Travel Management suspended its guidance for FY 2020 due to the coronavirus outbreak. This has led to Credit Suisse downgrading its earnings estimates materially for FY 2020 and FY 2021. However, with its shares down significantly this year, it still believes they are in the buy zone. Whilst I agree with Credit Suisse, I think there are better options in the travel sector.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of UBS reveals that its analysts have upgraded this wine company’s shares to a buy rating with a reduced price target of $15.40. According to the note, the broker expects the global wine giant to post a 3% decline in earnings in FY 2020 and then a 7% lift the following year. Whilst this is a touch disappointing compared to prior guidance, UBS believes its shares have been oversold and are now attractively priced. I think UBS makes some good points and Treasury Wine Estates would be worth considering.
These 3 stocks could be the next big movers in 2020
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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 Corporate Travel Management Limited and Treasury Wine Estates 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.