Brokers have named Afterpay Ltd (ASX:APT) and these ASX shares as buys this week. Here’s why they are bullish on them…
The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia. –
Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a number of broker notes.
Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:
Afterpay Ltd (ASX: APT)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $159.00 price target on this payments company’s shares. This follows news that Commonwealth Bank of Australia (ASX: CBA) is launching a buy now pay later product that will come with much lower fees for merchants. Morgan Stanley doesn’t appear concerned due to its belief that Afterpay has developed a moat thanks to its sales referrals and global brand. Furthermore, the broker notes that CBA’s offering is limited only to eligible customers, unlike Afterpay’s platform. The Afterpay share price is currently trading at $108.94.
Insurance Australia Group Ltd (ASX: IAG)
A note out of UBS reveals that its analysts have retained their buy rating and $6.00 price target on this insurance giant’s shares. UBS has been busy looking into the company’s margins and believes that they may now have bottomed. The broker expects improvements in the coming quarters. It also suspects that there could even be upside risk to margins if IAG successfully delivers its ongoing initiatives. The IAG share price is fetching $4.87 on Friday afternoon.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Analysts at Goldman Sachs have retained their buy rating and $6.73 price target on this airport operator’s shares. According to the note, the broker was pleased to see a big improvement in passenger volumes during February after a slowdown in January driven by border restrictions. Looking ahead, the broker believes the company will be a major beneficiary of the Australian domestic inoculation strategy. The Sydney Airport share price is trading at $6.22 on Friday.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- Zip (ASX:Z1P) and other BNPL shares face looming prospect of regulation
- Why the Telstra (ASX:TLS) share price has had a top week
- ASX tech shares: A once-in-a-lifetime buying opportunity?
- ASX 200 down 0.3%: Afterpay & Zip lower, AGL signs Portland Smelter deal
- Shocking new numbers reveal Sydney Airport (ASX:SYD) share price resilience
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.