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 leading brokers have named as buys this week are listed below. Here's why they are bullish on them:
Adairs Ltd (ASX: ADH)
According to a note out of Morgans, its analysts have upgraded this furniture and homewares retailer's shares to an add rating but with a trimmed price target of $4.20. This follows the release of its full year results last week. It was pleased with its performance in FY 2021. And while it has lowered its earnings estimates for the year ahead, the broker still feels that Adairs' shares are among the cheapest in the sector. The Adair's share price is fetching $3.64 on Monday.
South32 Ltd (ASX: S32)
A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating but trimmed their price target on this mining giant's shares to $3.60. Goldman reduced its price target after revising its earnings estimates lower to reflect higher than expected unit costs. However, this isn't enough for the broker to become any less bullish. It continues to believe its shares are great value and is forecasting significant free cash flow yields of 17% to 19% in FY 2022 and FY 2023. This is expected to underpin double digit dividend yields in both years. The South32 share price is trading at $2.84 today.
TPG Telecom Ltd (ASX: TPG)
Analysts at Morgans have also retained their add rating but trimmed their price target on this telco giant's shares slightly to $7.11. According to the note, the broker acknowledges that TPG's cash flows were weak in the first half of FY 2021. However, it puts this down to timing and expects a reversal in the second half. It also notes that management does not expect any significant seasonality in the business, which puts it on track to achieve operating earnings of $1.7 billion in FY 2021. Based on this, it appears to believe its shares good value at the current value. The TPG share price is fetching $6.19 this afternoon.
