Brokers name 3 ASX shares to buy today

BHP Billiton Limited (ASX:BHP) shares are one of three that brokers have tipped as buys today. Here's why…

| 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

It has been a busy week filled to the brim with results, sales updates, and annual general meetings.

This has kept many of Australia's top brokers busy adjusting their discounted cash flow models and recommendations accordingly.

Three that have come out favourably are listed below. Here's why they have been given buy ratings:

BHP Billiton Limited (ASX: BHP)

According to a note out of Citi, its analysts have retained their buy rating and $37.50 price target on this mining giant's shares following the announcement of its special dividend and share buyback. Citi believes that the buyback could be as much as 5% accretive to earnings in FY 2019 and 3% in FY 2020. In addition to this, the broker believes that BHP Billiton will be able to increase its shareholder returns in the future due to its net debt position falling inside its target range. I agree with Citi on BHP Billiton and think it is the best option out there for investors looking to gain exposure to the resources sector.

BWX Ltd (ASX: BWX)

A note out of Goldman Sachs reveals that it has retained its buy rating but reduced the price target on this personal care products company's shares to $4.20 after it added more colour to its FY 2019 guidance at its AGM.  According to the note, although the broker isn't thrilled to have had to downgrade its earnings estimates for BWX for the third time in the space of seven months, it still sees value in its shares at these levels. Goldman expects BWX to achieve sales of $163.1 million and earnings per share of 18 cents this year. While I do agree that its shares look to be good value, I don't have a lot of confidence in BWX's ability to forecast sales accurately. In light of this, I'm going to hold fire until at least its half year results.

Kidman Resources Ltd (ASX: KDR)

Analysts at Ord Minnett have retained their (speculative) buy rating and $2.80 price target on this lithium miner's shares after it announced a lithium hydroxide supply agreement with Japan based Mitsui. According to the note, the broker appears pleased with the deal and believes that, combined with its Tesla offtake agreement, Kidman now has about 30% of its funding requirements covered. If lithium prices remain favourable then I think Kidman is well-positioned to generate meaningful cash flows from its Mt Holland project. But that is a reasonably big if at this point, making it a risky investment option.

Should you invest $1,000 in Costco Wholesale right now?

Before you buy Costco Wholesale shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Costco Wholesale wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited. 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 Scott Phillips.

More on Share Market News

Group of successful real estate agents standing in building and looking at tablet.
Opinions

3 things about AFIC stock every smart investor knows 

AFIC is a popular long-term investment. There are some great things about it.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

Another good session is expected for Aussie investors today.

Read more »

Man with backpack spreading his arms out and soaking in the sun.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a fantastic start to the trading week for the share market today.

Read more »

A happy young woman in a red t-shirt hold up two delicious burritos.
Opinions

Is this a good time to buy Guzman y Gomez shares?

Has this stock become too cheap?

Read more »

Business people discussing project on digital tablet.
Broker Notes

Brickworks shares down 25% in 1 year. Is this a buying opportunity?

Is this blue chip a bargain buy? Let's see what one leading broker thinks.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Navigator Global, Pilbara Minerals, Smartpay, and Spartan shares are charging higher

These shares are starting the week on a positive note. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Austin Engineering, DroneShield, Meridian, and Ramelius shares are falling today

These shares are starting the week in the red. But why?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

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.

Read more »