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:
Austal Limited (ASX: ASB)
According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating and $4.35 price target on this shipbuilder's shares. The broker believes that Austal is well-positioned to benefit from the U.S. Navy's plan to increase its vessel count over the long term. Combined with the U.S. Navy's funding for Austal's steel capacity expansion, it believes the company will be able to deliver stable earnings for the foreseeable future. So, with the Austal share price changing hands at just 13x forward earnings, it believes they are great value. I think Goldman makes some good points and Austal could be worth considering.
Fortescue Metals Group Limited (ASX: FMG)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $20.00 price target on this iron ore producer's shares. This follows the announcement of an increase to its port export capacity last week. In addition to this, Macquarie believes Fortescue could deliver strong earnings growth in FY 2021 due to high iron ore prices. It expects this to lead to a bumper payout for shareholders and is forecasting a ~$2.35 per share dividend. I agree with Macquarie and feel Fortescue would be a great option for income investors.
Westpac Banking Corp (ASX: WBC)
Analysts at Citi have retained their buy rating and $23.50 price target on this banking giant's shares. According to the note, the broker notes that the big four banks have been offloading their wealth businesses. It believes Westpac's BT business is the best of the lot due to its scale and could demand a premium if it divested. It estimates that a sale could add upwards of 120 basis points to its CET1 ratio. I think Citi is spot on and Westpac could be a great investment option right now.
