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

colleagues on a lunch break looking at iPhone
Broker Notes

Top brokers name 3 ASX shares to buy now

Here's what brokers are recommending as buys this week.

Read more »

A young man goes over his finances and investment portfolio at home.
Broker Notes

Buy, hold, sell: Accent, Karoon Energy, and Transurban shares

Morgans has been looking at these shares. Let's see how it rates them.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Broker Notes

Bell Potter says this ASX 300 share could rise 75%

Let's find out what the broker is recommending to clients today.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Broker Notes

3 top ASX 300 shares tipped to jump 30% to 50%

Analysts believe these shares could rise 30% to 50% over the next 12 months.

Read more »

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

6 ASX 200 shares with fresh buy ratings this week

Brokers retain a positive view on Resmed, Newmont, Qantas and other ASX 200 shares. 

Read more »

Young businessman lost in depression on stairs.
Broker Notes

Brokers rate these 4 ASX 200 shares as a sell!

Do you have these ASX 200 shares in your portfolio?

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Broker Notes

Buy, hold, sell: WiseTech, Lotus Resources, Ampol shares

Let's check out some new ratings on these ASX shares.

Read more »

Three rockets heading to space
Broker Notes

SpaceX shares rocket 40% in 2 days. How do the experts rate this stock?

SpaceX shares were US$135 apiece in Friday's IPO. They closed overnight at US$192.50.

Read more »