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:
Alpha HPA Ltd (ASX: A4N)
According to a note out of Bell Potter, its analysts have retained their speculative buy rating and $2.00 price target on this high-purity aluminium-based products company. Bell Potter highlights that recent commentary gives it further confidence in Alpha HPA key market-based de-risking events and value drivers. This includes growth in in volumes under letter of intent offtake arrangements, which are expected to exceed Stage 2 capacity (10ktpa) and enables the drawdown of project debt finance. It also points to the continued best-in-class product performance and capability to deliver commercial volumes to the market within two years. Overall, the broker remains positive on the company and sees significant value in its shares at current levels. The Alpha HPA share price is trading at 70 cents on Monday.
Netwealth Group Ltd (ASX: NWL)
A note out of Morgan Stanley reveals that its analysts have upgraded this investment platform provider's shares to an overweight rating with an improved price target of $31.25. The broker was pleased with the company's performance during the third quarter, which saw Netwealth record further strong growth in funds under administration (FUA). The good news is that Morgan Stanley believes this trend will continue given how it expects advisers to continue migrating from incumbent platforms to specialist platforms. It points out that its market share is tiny compared to incumbent platforms, giving it a long runway for growth as the structural shift continues. In light of this, the broker feels that recent share price weakness has presented investors with a compelling buying opportunity and has upgraded its shares accordingly. The Netwealth share price is fetching $25.29 at the time of writing.
Santos Ltd (ASX: STO)
Analysts at Macquarie have retained their outperform rating on this energy giant's shares with a slightly trimmed price target of $8.60. According to the note, the broker has boosted its production and revenue forecasts ahead of the release of the company's first quarter update later this week. And while its earnings estimates (and valuation) have been reduced to reflect higher depreciation and amortisation, it believes its shares are still seriously undervalued. The Santos share price is trading at $5.56 today.
