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:
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A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts have retained their buy rating and $7.04 price target on this infant formula company's shares. This follows reports that China is planning to launch a fresh round of stimulus which will boost consumer spending. This includes providing parents with more than one child an addition allowance. It suspects that this allowance could be the catalyst to improving China's birth rate, which would be a big positive to infant formula sellers in the lucrative market. The A2 Milk share price is currently in a trading halt and last traded at $6.24.
Coles Group Ltd (ASX: COL)
A note out of Macquarie reveals that its analysts have retained their outperform rating and $20.20 price target on this supermarket giant's shares. The broker believes that the supermarket industry could be out of favour with investors due to regulation and reputational impacts caused by the ACCC's Supermarkets Inquiry. Nevertheless, it remains positive and appears to see this as a buying opportunity for investors. Particularly given the broker's belief that Coles is well-positioned for growth over the medium term thanks to its value offering in a tough economic environment and its investment in automation. The Coles share price is fetching $18.13.
Woolworths Group Ltd (ASX: WOW)
Analysts at Goldman Sachs have retained their conviction buy rating and $40.10 price target on this supermarket giant's shares. This follows the announcement of the ACCC's Supermarkets Inquiry interim report. Goldman notes that the report has not suggested any final recommendations but clearly outlines a list of key issues that will be further investigated. After which, recommendations will be made by the end of February. The broker believes that none of the issues being investigated are a surprise. As a result, it continues to believe that earnings and valuation risks from the inquiries are sufficiently priced in. In light of this, the broker thinks that recent share price weakness has created an opportunity to buy Woolies' shares at a very attractive level. The Woolworths share price is currently trading at $33.47.
