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.

Key points
  • A financial services company is favored for its recent accretive acquisition and strong execution in both organic and inorganic growth, with a positive outlook from brokers.
  • Despite recent outflows, a fund manager's shares are seen as a buy due to the potential for high dividend yield, even as performance challenges persist.
  • An investment platform provider garners a buy rating following impressive net flows and potential efficiencies from AI, with optimism for cost-effective expansion.

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 working in the stock exchange.

Image source: Getty Images

COG Financial Services Ltd (ASX: COG)

According to a note out of Bell Potter, its analysts have retained their buy rating on this financial services company's shares with an improved price target of $2.70. This follows news that COG has acquired a non-controlling interest in Fleet Network for $23.9 million. The broker expects the deal to be immediately accretive to earnings per share and is forecasting a 5% boost. Outside this, it highlights that COG has continued to execute strongly across organic and inorganic growth while fast approaching a valuation that reflects its capital efficiency. The COG Financial Services share price is trading at $2.36 on Monday.

GQG Partners Inc (ASX: GQG)

A note out of Macquarie reveals that its analysts have retained their outperform rating on this fund manager's shares with a trimmed price target of $2.50. This follows the release of its latest funds under management (FUM) update which revealed greater than expected outflows. And given the underperformance of its funds due to its defensive positioning, the broker suspects that funds inflows could remain soft in the near term. This has led to Macquarie cutting its earnings per share estimates. However, despite the negatives, the broker believes that investors should be snapping up GQG Partners' shares while they are cheap. Especially given that it is forecasting a generous (~14%) dividend yield from its shares over the next 12 months. The GQG share price is fetching $1.56 at the time of writing.

Netwealth Group Ltd (ASX: NWL)

Analysts at Citi have upgraded this investment platform provider's shares to a buy rating with a $35.00 price target. According to the note, the broker was pleased with Netwealth's performance during the first quarter. It notes that the company delivered stronger than expected net inflows for the period. Looking ahead, it has lifted its estimates to reflect Netwealth's expansion into new segments such as brokers. Citi was also pleased to see the company reiterate its operating expense guidance. It is taking this as a sign that increased compliance requirements will not mean a significant step up in costs. It also sees scope for the company to leverage AI to boost margins over the medium term. The Netwealth share price is trading at $31.30 this afternoon.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Gqg Partners. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Netwealth Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Netwealth Group. The Motley Fool Australia has recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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