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:
Guzman Y Gomez Ltd (ASX: GYG)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $41.90 price target on this quick service restaurant operator's shares. It feels that investors should be buying the company's shares given its strong growth outlook. The broker is forecasting sales to grow at a compound annual growth rate of 20% per annum through to FY 2030 thanks to store network expansion and market share gains. The Guzman Y Gomez share price is trading at $28.88 on Tuesday afternoon.
Steadfast Group Ltd (ASX: SDF)
A note out of Macquarie reveals that its analysts have retained their outperform rating and $6.80 price target on this insurance broker's shares. Macquarie highlights that Steadfast is looking to grow its international earnings. In light of this, the broker feels that it is becoming more appropriate to compare the company to international peers. This is good news for Steadfast shareholders as its nearest comparable peer, TWFG, trades on a ~40x two-year forward PE. This is a massive ~135% premium to what Steadfast shares trade on. In light of this, Macquarie feels that the ability to maximise returns on a US roll-out is key to unlocking long-term value and it believes management can thread the needle. The Steadfast share price is fetching $5.96 at the time of writing.
Suncorp Group Ltd (ASX: SUN)
Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating on this insurance giant's shares with an improved price target of $25.00. According to the note, Suncorp is the broker's top pick in the insurance industry. It highlights that it has better earnings quality and a stronger revenue growth outlook than ASX-listed peers, but trades at a discount to them. Morgan Stanley sees opportunities for Suncorp to close the gap and unlock value for shareholders. This includes sorting out its lack of aggregate reinsurance against volatility, which it believes is holding back the stock. It feels it could also unlock $1.4 billion in capital equity through a quota share. The Suncorp share price is trading at $21.79 on Tuesday.
