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:
BHP Group Ltd (ASX: BHP)
According to a note out of Goldman Sachs, its analysts have retained their buy rating on this mining giant's shares with an improved price target of $47.40. This follows an investor tour of the Escondida and Spence copper mines in Chile, where a total of 10 projects were outlined costing potentially up to US$15 billion. Goldman was pleased with the tour and notes that costs and production estimates are largely in line with expectations. As a result, the broker hasn't made any real changes to its earnings estimates and continues to see value in its shares. It notes that BHP is currently trading at ~5.8x forward EBITDA, which is below the 25-yr average EV/EBITDA of 6.5x to 7x. The BHP share price is trading at $40.73 on Monday.
Harvey Norman Holdings Limited (ASX: HVN)
A note out of Bell Potter reveals that its analysts have retained their buy rating and $5.80 price target on this retail giant's shares. This follows the release of a trading update last week. Bell Potter appeared pleased with the update and continues to forecast solid earnings growth in FY 2025. Outside this, the broker believes Harvey Norman has sizeable upside from the AI driven upgrade cycle/replacement cycle of devices purchased during COVID-peak. It also highlights that Harvey Norman is supported by exclusive access from brands/chip manufacturers given large format stores globally, which are attractive to global technology brands/suppliers when launching new products. The Harvey Norman share price is fetching $4.80 at the time of writing.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Analysts at Morgans have retained their add rating on this investment management company's shares with an improved price target of $27.25. This follows news that the company has raised $400 million through an equity placement to support investments in two new offshore affiliate stakes. The broker believes that Pinnacle's offshore presence has hit a critical mass which provides validation the group can export the model and achieve success in offshore markets. And while it concedes that the company's shares are arguably expensive on near-term valuation multiples, it feels this is justified due to the strong expected growth that will be delivered medium term. The Pinnacle share price is trading at $23.76 today.
