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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AMP Ltd (ASX: AMP)
According to a note out of Goldman Sachs, its analysts have upgraded this financial services company's shares to a buy rating with a $1.40 price target. The broker made the move for a number of reasons. This includes the stabilisation of positive net flows (including pension payments) in platforms, capital management opportunities outside of dividends, its ongoing cost out program, and valuation appeal. In addition, it highlights that its bank business appears to be structurally challenged but could perform relatively better versus peers in a lower interest rate environment. The AMP share price is trading at $1.16 on Tuesday.
BHP Group Ltd (ASX: BHP)
A note out of Macquarie reveals that its analysts have retained their outperform rating and $42.00 price target on this mining giant's shares. This follows the release of the Big Australian's quarterly update last week. Macquarie was particularly pleased with its stronger than expected copper volumes. Copper was 5% ahead of expectations, whereas iron ore was in line. And while BMA fell short due to weather impacts, NSWEC was 4% ahead. Outside this, Macquarie highlights that the Escondida (copper) outlook is improving and BHP is actively looking to improve its free cash flow (FCF) outcomes over the medium term. And pricing in US$72 per tonne iron ore (all other commodities at spot prices), it sees plenty of value in its shares at current levels. The BHP share price is fetching $36.78 at the time of writing.
Pilbara Minerals Ltd (ASX: PLS)
Analysts at Bell Potter have retained their buy rating and $2.00 price target on this lithium miner's shares. According to the note, the broker was a touch disappointed with the company's quarterly update. It notes that quarterly spodumene concentrate production and sales fell short of expectations due to disruption from P1000 project tie-ins and six days lost due to cyclone activity. Nevertheless, it felt that its cash margin from operations of $12 million was an encouraging result in the current weak lithium price environment. Outside this, the broker remains positive on long term lithium prices and likes Pilbara Minerals as it provides a clean exposure to global lithium fundamentals and sentiment. The Pilbara Minerals share price is trading at $1.38 today.
