Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • A leading biotech company is seen as a strong buy due to minimal impact from potential pricing changes and expected solid earnings growth.
  • A data centre operator has secured significant new contracts, leading analysts to view its shares as undervalued despite some EBITDA concerns.
  • Improving residential sentiment and supportive industry factors drive positive outlooks for a major property company's sales volumes.

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:

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.

Image source: Getty Images

CSL Ltd (ASX: CSL)

According to a note out of UBS, its analysts have retained their buy rating and $300.00 price target on this biotechnology company's shares. The broker has been looking at the impact that Most Favored Nation (MFN) pricing could have on CSL. It estimates that only around 10% of CSL's US sales are exposed to MFN, which would have a modest impact on its future earnings compared to the worst-case scenario. In addition, it sees limited consumer demand impacts from MFN pricing. And there is a chance that the company could receive full exemption depending on its investments in facilities in the US market. As a result, the broker remains positive and continues to forecast solid earnings growth from CSL in the coming years. The CSL share price is trading at $204.71 on Monday afternoon.

DigiCo Infrastructure REIT (ASX: DGT)

Another note out of UBS reveals that its analysts have retained their buy rating and $4.90 price target on this data centre operator's shares. This follows news that Digico has secured new customer wins from a combination of Hyperscale, Neocloud, Enterprise and Government customers. These contracts will increase Digico's Australian contracted IT capacity to 41MW by June 2026, which is 57% higher than its previous 2026 target of 26MW. UBS estimates that this suggests that the company is on target to achieve consensus earnings estimates for FY 2027. And while it does have concerns about its EBITDA per MW potentially being lower than expected, UBS remains positive and sees its shares as undervalued at current levels. The DigiCo share price is fetching $2.91 at the time of writing.

Stockland Corporation Ltd (ASX: SGP)

Analysts at Morgan Stanley have retained their overweight rating and $6.90 price target on this property company's shares. According to the note, the broker's research indicates that residential sentiment is improving. It believes this is a positive for Stockland and should be supportive of growing sales volumes. This is particularly the case given how house prices are expected to continue increasing and the new First Home Guarantee is likely to be supportive of the industry. The Stockland share price is trading at $6.22 on Monday.

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Broker Notes

Guess which ASX stock could more than triple in value according to Morgans!

A 285% return could be on the cards here according to the broker.

Read more »

A man sitting at his dining table looks at his laptop and ponders the share price.
Materials Shares

ASX lithium shares 'compelling' as top broker adjusts ratings

UBS predicts the global oil shock caused by the war in Iran will drive higher demand for electric vehicles.

Read more »

Red buy button on an Apple keyboard with a finger on it.
Broker Notes

Brokers name 3 ASX shares to buy right now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Is this ASX iron ore stock a better buy than Fortescue?

Bell Potter thinks this stock could rise 90%.

Read more »

person sitting at outdoor table looking at mobile phone and credit card.
Broker Notes

What is Bell Potter's latest outlook for Kogan shares?

Here's the updated guidance out of the broker.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Ord Minnett says this ASX 200 stock can rise 40%

Big returns could be on offer with this top stock.

Read more »

comical investor reading documents and surrounded by calculators
Broker Notes

6 ASX shares at 52-week lows: Buy, hold, or sell?

The market finished lower on Thursday as the conflict in Iran dragged on.

Read more »

Business people discussing project on digital tablet.
Broker Notes

Buy, hold, sell: Breville, Collins Foods, and MA Financial shares

Let's see if analysts are bullish or bearish on these names.

Read more »