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:
Helloworld Travel Ltd (ASX: HLO)
According to a note out of Morgans, its analysts have upgraded this travel agent’s shares to an add rating with an improved price target of $2.46. This follows its equity raising, which has been undertaken to strengthen its balance sheet during these difficult trading conditions. Although the broker doesn’t believe its earnings will return to previous levels until FY 2023, unless a vaccine is developed, it believes Helloworld’s shares are cheap at the current level and has upgraded them. While I agree that its shares look cheap, I would wait for travel markets to recover before considering an investment.
OceanaGold Corp (ASX: OGC)
A note out of the Macquarie desk reveals that its analysts have upgraded this gold miner’s shares to an outperform rating with an improved price target of $3.70. The broker made the move in response to the release of its economic assessment of the Waihi District in New Zealand. It notes that the company’s estimate of 2.2 million ounces and an all-in sustaining cost of US$627 per ounce was far better than it was expecting. I think OceanaGold could be a good option for investors looking for exposure to gold.
Westpac Banking Corp (ASX: WBC)
Analysts at Citi have retained their buy rating but lowered their price target on this banking giant’s shares to $23.50. The broker has been busy looking through the banking sector and working out what the future holds for the banks following the pandemic. While it sees further loan deferrals, slower dividend recoveries, and higher capital buffers, it also sees value in some bank shares. Westpac is the broker’s preferred pick, followed by Australia and New Zealand Banking GrpLtd (ASX: ANZ). I agree with Citi that the Westpac share price is in the buy zone right now.
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Helloworld 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.
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