Brokers name 3 ASX shares to buy today

Brokers have named Afterpay Ltd (ASX:APT) and these ASX shares as buys this week. Here’s why they are bullish on them…

| More on:
3 asx shares to buy depicted by man holding up hand with 3 fingers up

Image source: Getty Images

Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating but trimmed their price target on this payments company’s shares to $149.00. The broker has been looking into the entry of Commonwealth Bank of Australia (ASX: CBA) into the buy now pay later market. It expects this to put pressure on Afterpay’s merchant fees in the local market. However, this isn’t enough to dim its positive view of the company. Particularly given the strong performance of its US business and its expansion across mainland Europe. It believes Afterpay could be on the cusp of building a global buy now pay later platform. The Afterpay share price is trading at $119.77 this morning.

EML Payments Ltd (ASX: EML)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this payments company’s shares to $6.20. This follows the announcement of its acquisition of Sentenial Limited for up to 110 million euros on Wednesday. Macquarie appears positive on the acquisition, noting that it gives EML exposure to open banking’s strong structural growth story. The EML share price is fetching $5.67 on Thursday.

Qantas Airways Limited (ASX: QAN)

Analysts at Ord Minnett have retained their buy rating and $6.00 price target on this airline operator’s shares. This follows the announcement of a travel bubble between Australia and New Zealand that will launch later this month. Ord Minnett was pleased with the news. Combined with the ongoing domestic recovery, it expects the bubble to support its balance sheet recovery. In addition, it believes Qantas can come out of the crisis in a stronger position that when it entered it. The Qantas share price is trading at $5.39 today.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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 and recommends EML Payments. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes