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:
BHP Group Ltd (ASX: BHP)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $44.00 price target on this mining giant's shares. This follows the release of the company's quarterly update at the end of last week. Morgan Stanley was pleased with the update and notes that BHP's production was stronger than expected across copper and iron ore. Though, due to weaker than expected commodity prices, the earnings impact of its increased production is expected to be largely neutral. Nevertheless, the broker remains positive on the company's outlook and sees value in its shares at current levels. The BHP share price is currently trading at $40.55.
Goodman Group (ASX: GMG)
A note out of Bell Potter reveals that its analysts have initiated coverage on this industrial property company's shares with a buy rating and $39.35 price target. The broker sees a strong long-term pathway ahead for Goodman thanks to its best-in-class management team and transition to data centres. And while it concedes that this transition carries greater risk profile, it feels that the rewards make it worth it. Bell Potter highlights that the outlook for data centres over the medium to longer term is positive driven by a 15% three-year CAGR baseload compute and AI demand increase in workload, high barriers to entry, and leverage to hyperscaler capex expansion and structural tailwinds. And with Goodman's shares trading at a discount to historical multiples, it feels that now is the time to invest. The Goodman share price is fetching $34.60 at the time of writing.
Mesoblast Ltd (ASX: MSB)
Another note out of Bell Potter reveals that its analysts have retained their speculative buy rating on this biotechnology company's shares with an improved price target of $3.50. This follows the release of a sales update from Mesoblast relating to its recently approved Ryoncil stem cell therapy. Bell Potter was pleased with the update and believes it is a promising start for Ryoncil. And while Mesoblast is still burning cash, it feels that this will rapidly head to neutral. Outside this, the broker highlights that its Revascor product candidate could be a cash cow for the company. Its suggests that a partner might pay US$300 million upfront to licence it. The Mesoblast share price is trading at $2.31 today.
