Brokers name 3 ASX shares to buy today

Superloop Ltd (ASX:SLC) shares are one of three that brokers have named as buys this week. Here's why…

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A large number of broker notes have hit the wires this week, leading to many popular shares being declared buys and sells.

Three shares that are in favour with brokers and have been given a buy rating are listed below. Here's why they are bullish on them:

Austal Limited (ASX: ASB)

According to a note out of Citi, its analysts have initiated coverage on this ship builder with a buy rating and $2.76 price target. Although the broker acknowledges that the Austal business is highly cyclical and very volatile, it believes that now is an opportune time to invest. This is because its shares are trading at a significant discount to its peers, despite expectations for reasonably solid profit growth over the next three years. I think Austal could be worth further investigation considering its undemanding valuation and positive outlook.

Reliance Worldwide Corporation Ltd (ASX: RWC)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $5.50 price target on this plumbing parts company's shares. According to the note, the broker has held firm with its buy rating after industry peer Ferguson PLC released its results. Ferguson, the largest distributor of plumbing supplies, PVF, waterworks and fire and fabrication products in the United States, delivered a 9.7% increase in revenue in its U.S. division. Goldman notes that this was driven by increasing repair and maintenance activity, which should be a positive for Reliance. In addition to this, Goldman points out that the company's shares are trading at a discount to the ASX 200 Industrials (excluding financials) for the first time since listing. I think Goldman makes a great point and that Reliance could be a good share to buy.

Superloop Ltd (ASX: SLC)

Analysts at Morgans have resumed coverage on Superloop with an add rating and $2.11 price target. According to the note, the broker expects the second half to be the end of its increased capital expenditure phase. Another positive is that Morgans believes the company will soon start generating cash flow from its INDIGO submarine cable. Overall, Morgans believes this has positioned the company well to capture bandwidth growth throughout Australia, Singapore, and Hong Kong and deliver strong sales growth over the next few years. I like Superloop and think it is a good option for investors with a high tolerance for risk.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SUPERLOOP FPO. 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.

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