Brokers name 3 ASX shares to buy now

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

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Australia’s top brokers have been busy adjusting their estimates and recommendations once again. This has led 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:

Adore Beauty Group Ltd (ASX: ABY)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating but cut the price target on this online beauty retailer’s shares to $5.00. Although the broker was disappointed with its recent trading update, which appears to indicate that its growth is turning negative due to tough comparisons being cycled, it remains positive on the long term. This is due to its leadership position in a structural-growth market. The Adore Beauty share price is trading at $3.84 today.

Afterpay Ltd (ASX: APT)

Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $149.00 price target on this payments company’s shares. According to the note, the broker’s research indicates that app downloads in the United States remain strong. And while they were lower than in March, it believes this was due to the Afterpay Day sales event during that month. In addition to this, the broker is positive on the company’s European expansion, which it sees as a step towards building a global platform. The Afterpay share price is fetching $96.97 today.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

Analysts at Morgans have retained their add rating and lifted their price target on this banking giant’s shares to $34.50. According to the note, the broker was pleased with ANZ’s half year results, noting that its cash earnings and dividend were both ahead of expectations. In addition to this, it was pleased with its bad debts, margins, and its cost reduction progress. The ANZ share price is trading at $27.56.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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