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 outlined below. Here's why they are bullish on them:
Image source: Getty Images
Fortescue Ltd (ASX: FMG)
According to a note out of Macquarie, its analysts have retained their outperform rating on this iron ore miner's shares with a trimmed price target of $22.00. This follows the release of a third-quarter update that revealed lower-than-expected costs and a stronger than anticipated balance sheet. While the Iron Bridge operation continues to weigh on its production, the broker remains positive on the investment opportunity here. This is particularly the case given the potential for its green energy initiatives to support its growth. The Fortescue share price is trading at $19.95 on Monday afternoon.
Regis Resources Ltd (ASX: RRL)
A note out of Morgans reveals that its analysts have upgraded this gold miner's shares to a buy rating with a slightly improved price target of $10.07. This followed the release of a strong quarterly update, which revealed gold sales of 89.1koz at an AISC of A$2,807 per ounce. This was achieved with an average realised price of A$6,977 per ounce, which underpinned revenue of $622 million. Morgans notes that this was ahead of its expectations. In addition, the broker points out that Regis Resources generated cash of $198 million, which has helped take its cash balance above $1.1 billion. In light of this and recent share price weakness, it believes the Regis Resources shares are being materially undervalued by the market. The Regis Resources share price is fetching $7.43 at the time of writing.
Suncorp Group Ltd (ASX: SUN)
Analysts at Morgan Stanley have retained their overweight rating and $21.60 price target on this insurance giant's shares. According to the note, the broker was pleased with Suncorp's aggregate reinsurance cover. Morgan Stanley expects this to reduce earnings volatility and Suncorp's cost of capital, which it believes should support a re-rating of its shares to higher multiples. As a result, the broker sees plenty of value in the company's shares at current levels. The Suncorp share price is trading at $16.77 this afternoon.
