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:
Afterpay Ltd (ASX: APT)
According to a note out of Citi, its analysts have retained their buy rating but halved the price target on this payments company's shares to $21.10. The broker suspects that uncertainty relating to consumer spending will weigh on its shares in the near future. However, it appears to see value in its shares at the current level. Though, it does class them as a high risk investment option. I think Afterpay could be a great long term investment. However, I would suggest investors wait for the market volatility to ease and the coronavirus to pass before picking up shares.
SEEK Limited (ASX: SEK)
Analysts at Morgans have upgraded this job listings company's shares to an add rating with a lowered price target of $20.55. According to the note, the broker made the move on valuation grounds after a sharp pullback in the company's shares following the coronavirus outbreak. The broker has warned, though, that an economic downturn could lead to SEEK needing to raise capital to keep it within its debt to equity benchmark. I agree with Morgans and think SEEK would be a top buy and hold option once the market settles.
Telstra Corporation Ltd (ASX: TLS)
A note out of UBS reveals that its analysts have retained their buy rating but trimmed the price target on this telco giant's shares to $3.70. In response to Telstra's update last week and the broker's belief that the coronavirus impact will continue until early in FY 2021, UBS has reduced its earnings estimates for Telstra. However, it remains positive on the investment opportunity here due to the pullback in its share price. I think UBS is spot on and I would be a buyer of its shares at the current level.
