Top broker names 3 ASX shares to buy today

Medibank Private Ltd (ASX:MPL) is one of three shares labelled as buys by analysts at Macquarie Group Ltd (ASX:MQG). Should you invest?

| More on:
a woman

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

Analysts at Macquarie Group Ltd (ASX: MQG) have been very busy today. A research note out of its equities research team this morning has placed outperform ratings on no less than three ASX shares in the insurance industry.

The three shares which Macquarie is recommending are as follows:

Medibank Private Ltd (ASX: MPL)

Following a 17% drop in its share price in the last three months I would have to agree with Macquarie that Medibank is starting to look attractive again. The estimated fully franked 4.7% dividend its shares will provide next year according to CommSec makes it a great option for income investors in my opinion. Whilst I do have concerns over how competitive the industry is and how easy it is to switch providers, at 15x full year earnings I believe it presents investors with a compelling risk/reward.

NIB Holdings Limited (ASX: NHF)

Although Macquarie likes both, I personally would choose Medibank over health insurance rival NIB Holdings at this point in time. Not only are NIB's shares changing hands at 21x full year earnings, they are only expected to provide a fully franked 3.5% dividend in FY 2017. As far as I'm concerned the shares are looking a little on the expensive side right now and could be subject to declines in the months ahead as a result.

Suncorp Group Ltd (ASX: SUN)

Suncorp would have to be my pick of all of Australia's insurers at the moment. It's cheap price, strong dividend, and new operating model make it a great investment today in my eyes. The company has underperformed in recent years, but management appears confident that changes to its operating model will greatly improve the overall performance of the company. At 14x full year earnings and expected to pay a fully franked 6% dividend next year, its shares look to be in bargain territory to me.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »