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 ASX shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Macquarie, its analysts have held firm with their outperform rating and $25.50 price target on this iron ore producer's shares. This follows the announcement of a US$1.5 billion notes offering late last week. While half of the funds will be used to repay its existing US$750 million 2022 senior unsecured notes, the broker expects the rest to fund its Iron Bridge development and allow it to maintain its high payout ratio. In light of this, Macquarie is forecasting double digit dividend yields over the next two years. The Fortescue share price is trading at $19.12 this afternoon.
Incitec Pivot Ltd (ASX: IPL)
Another note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this agricultural chemicals company's shares to $3.25. According to the note, the broker believes that Incitec Pivot's shares are undervalued based on current and longer term forecast average fertiliser prices. These higher prices have resulted in the broker positively revising its earnings per share estimates for the near term. The Incitec Pivot share price is fetching $2.87 on Monday afternoon.
Temple & Webster Group Ltd (ASX: TPW)
Analysts at Morgan Stanley have retained their overweight rating and $14.00 price target on this online homewares and furniture retailer's shares. According to the note, the broker accepts that its growth will slow when consumer habits revert back to normal post-pandemic. However, it still believes the company is capable of growing at a strong rate over the medium thanks to market share gains and greater online penetration. The Temple & Webster share price is trading at $10.22 today.
