Brokers name 3 ASX shares to buy now

Brokers have named Appen Ltd (ASX:APX) 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:

Appen Ltd (ASX: APX)

According to a note out of Ord Minnett, its analysts have retained their buy rating and $24.75 price target on this artificial intelligence data services company’s shares. This follows the release of a trading and restructure update earlier this week. Ord Minnett was pleased to see the company reaffirm its earnings guidance for FY 2021. It was also happy to see the company restructure its business in a way that will provide more clarity in relation to what is driving its growth. The Appen share price is fetching $13.46 today.

Flight Centre Travel Group Ltd (ASX: FLT)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $17.50 price target on this travel agent’s shares. This follows the release of recent updates from travel peers such as Qantas. And while it suspects that lower travel agent commissions could weigh on its recovery, it believes valuation support is emerging. It also notes that it remains sensitive to positive news flow as borders reopen and vaccines roll out. As a result, it holds firm with its positive view on the company. The Flight Centre share price is trading at $14.88 on Friday.

Qantas Airways Limited (ASX: QAN)

Analysts at Morgan Stanley have retained their overweight rating and $5.90 price target on this airline operator’s shares following its market update. According to the note, the broker was pleased to see that domestic capacity is expected to increase beyond previous expectations during the fourth quarter. And while its guidance for the full year fell short of expectations and its international operations look set to drag on its FY 2022 results, the broker sees enough value in its shares to maintain its overweight rating. The Qantas share price is trading at $4.73 this morning.

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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. owns shares of Appen Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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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