With so many shares to choose from on the Australian share market, it can be hard to decide which ones to buy.
The good news is that brokers across the country are doing a lot of the hard work for you.
Three top shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:
Adairs Ltd (ASX: ADH)
According to a note out of Goldman Sachs, it has retained its buy rating but trimmed the price target on this home furnishings retailer's shares to $1.79 following its trading update on Friday. Although the broker acknowledges that the retail environment is uncertain and could weigh on its shares, it believes there is material upside risk should there be a broad improvement in retail conditions. Furthermore, with its shares trading at 9x estimated FY 2020 earnings, the broker believes the selloff has been overdone. As disappointing as its update was, I agree with Goldman that its shares are attractively priced.
CSL Limited (ASX: CSL)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $225.00 price target on this biotherapeutics company's shares following its China update. According to the note, the broker was pleasantly surprised with CSL's update and had expected an even greater impact to albumin sales in the country following its decision to self-distribute its products. In addition to this, the broker suspects that strong demand for immunoglobulins and the positive performance of its higher-margin products could support earnings growth next year. I think Macquarie is spot on and CSL would be a great option today.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Citi have upgraded this pizza chain operator's shares to a buy rating, albeit with a slightly reduced price target of $44.00. According to the note, the broker believes that Domino's may struggle to achieve its full year guidance, however, it feels this has already been priced in by the market. But one thing that doesn't appear to have been priced in is the company's European expansion. Citi's analysts see plenty of upside from this, hence the upgrade today. I would have to agree with Citi on this one as well.
