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:
Clover Corporation Limited (ASX: CLV)
According to a note out of Ord Minnett, its analysts have retained their buy rating but reduced the price target on this specialist ingredients company’s shares to $3.00. The broker notes that Clover delivered a full year result in line with expectations last week. And while its guidance for FY 2021 was a bit disappointing due to de-stocking, its analysts feel confident that this is just a short term issue. They expect trading conditions to improve in the coming months. Outside this, the broker believes Clover is well-placed to benefit from potential changes to infant formula regulations in China. I think Ord Minnett makes some great points and Clover could be worth considering as a long term option.
St Barbara Ltd (ASX: SBM)
Analysts at Morgan Stanley have retained their buy rating and $3.85 price target on this gold miner’s shares. This follows an issue at the Gwalia gold mine which has impacted its production in the first quarter. However, the broker notes that management expects to make up for this shortfall in the second quarter and has reiterated its full year production guidance. In addition to this, the broker has previously spoken positively about its Atlantic Gold acquisition. It likes it due to the diversification and production upside it brings to the table. While it isn’t my top pick in the sector, I think St Barbara could be a good option for investors wanting exposure to gold.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $6.16 price target on this airport operator’s shares. Although the broker acknowledges that the future of domestic and international travel has become more uncertain in recent months, its analysts remain positive on Sydney Airport. They believe the company is very well-placed to hibernate through to when the recovery commences and then similarly well-placed to leverage it when it does. I think Goldman Sachs is spot on and Sydney Airport could be a great option for patient investors.
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Returns as of 6th October 2020
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 has no position in any of the stocks mentioned. 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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