With so many shares to choose from on the ASX, 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:
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Cleanaway Waste Management Ltd (ASX: CWY)
According to a note out of Morgan Stanley, its analysts have commenced coverage on this waste management company's shares with an overweight rating and $2.45 price target. The broker believes that Cleanaway's vertical integration and large collections business gives it an edge over the competition. And while it sees some short term pain during the pandemic, it is very positive on its long term growth prospects in a lucrative market. It also sees opportunities for consolidation in the industry. I agree with Morgan Stanley and would be a buyer of its shares.
Lovisa Holdings Ltd (ASX: LOV)
Analysts at Morgans have retained their add rating but trimmed the price target on this jewellery retailer's shares to $8.14. According to the note, the broker wasn't surprised to see Lovisa's sales fall heavily in the second half. And although it expects its sales recovery to take time due to its reliance on foot traffic, it still sees a lot of value in its shares at the current level. Especially given its expansion opportunities. I would have to agree with Morgans and feel the Lovisa share price is good value at present.
Reject Shop Ltd (ASX: TRS)
Another note out of Morgan Stanley reveals that its analysts have upgraded this discount retailer's shares from an underweight rating to an overweight rating and lifted the price target on them materially to $10.00. According to the note, the broker believes Reject Shop has a big opportunity in a fragmented market. And while it acknowledges that its performance has underwhelmed in the past, it is optimistic that its new simplified strategy will be that start of something positive. While I think Morgan Stanley makes some good points, I think the Reject Shop share price looks expensive at over 50x estimated FY 2021 earnings.
