With so many shares to choose from on the ASX, it can be difficult 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:
Metcash Limited (ASX: MTS)
According to a note out of Jarden, its analysts have retained their buy rating on this wholesale distributor's shares with an improved price target of $4.40. The broker notes the Metcash's AGM update reveals that its sales growth has been better than expected. In light of this, the broker believes that its food business is being undervalued by the market at 1 times EBIT. It also sees scope for the company's hardware business to surprise with stronger-than-expected margins. The Metcash share price is trading at $3.72 this afternoon.
Premier Investments Limited (ASX: PMV)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $32.25 price target on this retailer's shares. The broker notes that Premier Investments is undertaking a strategic review. And while it acknowledges that its Breville Group Ltd (ASX: BRG) investment is not a natural fit with its apparel brands, it thinks it should hold onto it. Morgan Stanley values the Breville stake at $4.23 per share and notes that its outperformance should also continue thanks to its $10 billion global revenue opportunity. The Premier Investments share price is fetching $25.50 today.
Rio Tinto Ltd (ASX: RIO)
Analysts at Goldman Sachs have retained their conviction buy rating and $125.20 price target on this mining giant's shares. This follows the broker's weekly bulk miners review. Goldman likes Rio Tinto due to its compelling valuation and strong production growth potential. The Rio Tinto share price is trading at $119.67 on Monday.
