Leading brokers name 3 ASX shares to buy today

Webjet Limited (ASX:WEB) shares are one of three that leading brokers have named as buys this week. 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

Many of Australia's leading brokers have been busy adjusting their recommendations to account for new data and developments.

Three shares that have fared well and been given buy ratings are listed below. Here's why they are in favour with brokers:

Jumbo Interactive Ltd (ASX: JIN)

According to a note out of Morgans, its analysts have held firm with their add rating and lifted the price target on its shares to $10.70 following last week's market update. Morgans was pleasantly surprised with the update and has upgraded its forecasts meaningfully to reflect its strong growth and operating leverage. In addition to this, the broker believes that its Powered By Jumbo offering has a lot of promise and suspects that a special dividend could be on the horizon. Despite its strong gain last week, I still feel Jumbo Interactive's shares are good value given its positive growth prospects.

Tabcorp Holdings Limited (ASX: TAH)

A note out of Deutsche Bank reveals that it has retained its buy rating and $5.50 price target on Tabcorp's shares following Jumbo Interactive's market update. As Jumbo Interactive is Tabcorp's digital partner, the broker believes that its upgraded guidance ought to be considered a positive for Tabcorp. Deutsche has pencilled in revenue growth of 10% for Tabcorp's lotteries business in FY 2019. I'm not a huge fan of Tabcorp at this point, so would prefer to get exposure to lotteries through Jumbo Interactive.

Webjet Limited (ASX: WEB)

Analysts at UBS have retained their buy rating and lifted the price target on this online travel company's shares to $20.20. According to the note, the broker has lifted its price target to reflect the positive contribution of the Destinations of the World business that was recently acquired for $240 million. In addition to this, UBS believes that Webjet will achieve earnings growth above 17% in FY 2019. Given this level of growth, the broker sees a lot of value in its shares and I completely agree with this view.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Jumbo Interactive Limited. The Motley Fool Australia has recommended Webjet Ltd. 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

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a bountiful session for investors this hump day.

Read more »

An excited man stretches his arms out above his head as he reaches a mountain peak.
Record Highs

Breaking: CBA shares hit a new record of $180

CBA shares can't possibly keep rising can they?

Read more »

A happy young couple celebrate a win by jumping high above their new sofa.
52-Week Highs

Guess which ASX 200 furniture retailer is up 400% in 5 years?

Up 400% over the past five years is not bad for a furniture retailer. Here's why this quiet compounder has…

Read more »

Arrows pointing upwards with a man pointing his finger at one.
Share Market News

Morgans says these ASX stocks can rise 30% to 80%

These shares could be cheap according to the broker. Let's see what it is saying.

Read more »

Two people shaking hands in the boardroom on a merger.
Mergers & Acquisitions

What did Macquarie make of the Brickworks and Soul Patts merger?

Macquarie sees simplification, scale, and upside… but it also has a warning..

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Mergers & Acquisitions

PointsBet share price surges 11% on improved takeover offer

The bidding war for PointsBet shares continues apace today.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

Leading broker tips 50%+ upside for IDP Education shares

The team at Macquarie thinks this beaten down stock could be a buy.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Coronado, DroneShield, Lovisa, and Mayne Pharma shares are racing higher today

These shares are having a good time on hump day. But why?

Read more »