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 Goldman Sachs, its analysts have upgraded this payments company’s shares to a buy rating with a trimmed price target of $25.10. The broker made the move on valuation grounds after a sharp share price pullback. This decline was triggered by concerns over its revenue outlook, potential credit loss rates, and its liquidity position. Goldman doesn’t believe there is anything to worry about and believes it will come out of the coronavirus current crisis in an even stronger position versus competitors. I think Goldman Sachs is spot on and it could be worth considering an investment.
Catapult Group International Ltd (ASX: CAT)
A note out of Morgans reveals that its analysts have retained their add rating but cut the price target on this sport analytics and wearables company’s shares to $1.68. The broker notes that Catapult has warned that the suspension of sporting events globally could impact its sales during the fourth quarter. While this is a blow, Morgans believes it is well-placed to weather this short term headwind. It was also pleased to see management continue to forecast being cash flow positive in FY 2021. I think Morgans makes some good points. However, I would like to see how long the suspensions drag on for before considering an investment.
Clover Corporation Limited (ASX: CLV)
Analysts at UBS have upgraded this infant formula ingredient producer’s shares to a buy rating with a reduced price target of $2.20. According to the note, Clover’s half year result fell short of the broker’s expectations due to weakness in the ANZ and Asia regions. While this was disappointing, it remains positive on its long term growth. This is thanks to favourable regulation changes and its exposure to structural growth markets. I agree with UBS on Clover and think it could be a good long term option.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.