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:
Champion Iron Ltd (ASX: CIA)
According to a note out of Bell Potter, its analysts have initiated coverage on this iron ore miner's shares with a buy rating and $7.15 price target. The broker likes Champion Iron due to the 100%-owned Bloom Lake mine in Canada, which produces around 15Mtpa of high grade (+66% Fe) iron concentrate. It notes that this high grade concentrate reduces steel making carbon emissions by around 10% compared with typical hematite ore. And from 2026, processing plant upgrades will lift around half of CIA's production to 69% Fe, which would be classed as "DR-grade level." This would mean that CIA's concentrates can supply Direct Reduction Iron – Electric Arc Furnace steel producers. These reduce carbon emissions by 2x to 7x compared with traditional blast furnace methods. The Champion Iron share price is trading at $5.61 on Monday.
Hub24 Ltd (ASX: HUB)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating on this investment platform provider's shares with an improved price target of $62.00. The broker was pleased with Hub24's performance in FY 2024 and believes more of the same is coming in the near term. This is because of its strong outlook, structural tailwinds, and growing net inflows, which the broker expects to underpin solid earnings per share growth through to at least FY 2027. It also thinks Hub24 is well placed to win more institutional mandates and outperform its funds under management guidance. In light of this, it feels that now is a good time to invest. The Hub24 share price is fetching $57.26 this afternoon.
Steadfast Group Ltd (ASX: SDF)
Analysts at Macquarie have retained their outperform rating and $6.80 price target on this insurance broker's shares. According to the note, the broker highlights that there has been talk of the ACCC looking into Steadfast's market position. However, Macquarie isn't concerned and highlights that Steadfast's network structure means that the share of commercial lines it owns is closer to 15% of the market than the 38% observable at the headline level. And with Steadfast making only two major broker acquisitions since 2018, it appears optimistic that no action will be taken by the competition regulator. The Steadfast share price is trading at $5.62 at the time of writing.
