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:
Image source: Getty Images
Domino's Pizza Enterprises Ltd (ASX: DMP)
According to a note out of Morgans, its analysts have retained their buy rating on this pizza chain operator's shares with a reduced price target of $22.20. The broker highlights that the departure of CEO Mark van Dyck will not delay the company's turnaround according to executive chairman, Jack Cowin. In fact, it is expected to accelerate follow van Dyck's exit. Morgans also highlights that earnings and franchisee profitability should improve next year because of significant cost out initiatives. And while it acknowledges that sales led earnings growth will be vital for long term value creation, it notes that one of its rivals has rallied materially on cost-led growth. And with Domino's trading a sharp discount to its rival, which it views as an inferior business, it sees scope for a re—rating in the near future. As a result, Morgans thinks the risk reward looks attractive here. The Domino's share price is trading at $17.83 on Monday.
Goodman Group (ASX: GMG)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $40.47 price target on this integrated industrial property company's shares. The broker was pleased to see that Goodman has announced a major US$2.7 billion data centre partnership in Hong Kong. The private institutional investment vehicle will be focused exclusively on the Hong Kong data centre market. It will hold four fully stabilised centres and two centres under active development. Morgan Stanley sees this a key milestone for Goodman and its data centre ambitions. The Goodman share price is fetching $34.90 at the time of writing.
Polynovo Ltd (ASX: PNV)
Another note out of Morgans reveals that its analysts have retained their speculative buy rating and $1.69 price target on this medical device company's shares. Morgans remains positive on Polynovo despite reducing its margin assumptions and increasing new market development costs. And while it has led to a lower DCF valuation, this has been offset as Morgans has reduced the discount applied to its valuation from 25% to 20%. Looking ahead to its upcoming results, it is expecting revenue in line with consensus estimates at $129 million. The Polynovo share price is trading at $1.18 on Monday afternoon.
