With so many shares to choose from on the Australian share market, 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:
Flight Centre Travel Group Ltd (ASX: FLT)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating on this travel agent giant's shares with an improved price target of $26.80. Macquarie is feeling positive about Flight Centre and continues to rate it as its top pick in the sector. It likes the company due to its potential for market share growth. Macquarie also sees scope for Flight Centre to outperform consensus estimates and thinks that changes to its business model give the company a sizeable total addressable market. This gives it a long runway for growth. The Flight Centre share price is trading at $22.25 today.
IGO Ltd (ASX: IGO)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $7.15 price target on this battery materials miner's shares. In its weekly lithium price update, the broker has once again named IGO as its only buy-rated ASX lithium stock. This is largely due to the Greenbushes operation. It highlights that Greenbushes is the lowest cost lithium asset in its coverage. In addition, it notes that its expansion should take Greenbushes production capacity from ~1.5Mtpa today to ~2.4Mtpa. And that this expansion is one of the most economically compelling brownfield lithium projects. The IGO share price is fetching $6.04 at the time of writing.
Rio Tinto Ltd (ASX: RIO)
Analysts at Morgan Stanley have retained their overweight rating and $142.00 price target on this mining giant's shares. According to the note, the broker highlights that there is speculation that Rio Tinto could be interested in making a blockbuster US$32 billion acquisition of Canadian diversified miner Teck Resources. The miner appears to be attracted to Tech Resources' copper exposure. Outside this, the broker likes Rio Tinto due to its belief that copper demand will continue to accelerate. It also feels positive on aluminium prices as cost curves rise. In light of this, it feels that the mining giant's shares are good value at current levels. The Rio Tinto share price is trading at $120.08 on Monday.
