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:
NIB Holdings Limited (ASX: NHF)
According to a note out of UBS, its analysts have upgraded this private health insurer's shares to a buy rating with a $7.85 price target. It made the move on valuation grounds, highlighting that NIB's shares are trading a sizeable discount to its rival Medibank Private Ltd (ASX: MPL). The broker doesn't feel that this discount is justified, especially given its belief that NIB's key AHRI business has a better outlook. In addition, the broker sees potential for NIB to grow its earnings in the double digits through to at least FY 2028. The NIB share price is trading at $6.95 on Monday afternoon.
Pilbara Minerals Ltd (ASX: PLS)
A note out of Macquarie reveals that its analysts have retained their outperform rating on this lithium miner's shares with a heavily reduced price target of $1.50. The broker notes that after stabilising at the start of the year, lithium prices have been moving lower on increasing mine supply and building inventories. And while Macquarie's commodity strategy team's analysis indicates that prices are now sitting around the 50th percentile of the cost curve, there are yet to be any further production cuts. In part this is being caused by the expectations of very strong demand growth catching up. As a result, it thinks that lithium prices are going to remain under pressure for some time to come and has downgraded its forecasts and ultimately its earnings estimates for Pilbara Minerals. Nevertheless, it remains positive and sees value its shares at current levels and therefore holds firm with its outperform rating. The Pilbara Minerals share price is fetching $1.35 at the time of writing.
Reece Ltd (ASX: REH)
Analysts at Ord Minnett have upgraded this plumbing parts company's shares to a buy rating with a trimmed price target of $18.40. According to the note, Reece's trading update last week revealed earnings guidance well short of expectations. This reflects weakness in both the local and US construction markets. While this is disappointing, the broker feels that Reece is hitting a cyclical low. As a result, it thinks now could be a good time for patient investors to pick up shares. Especially given its belief that its performance will improve modestly in FY 2026 and then fully in FY 2027. The Reece share price is trading at $14.12 this afternoon.
