Brokers name 3 ASX shares to buy today

Afterpay Limited (ASX:APT) shares are one of three that brokers have named as buys this week…

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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:

Afterpay Limited (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $44.00 price target on this payments company's shares. Morgan Stanley appears to have been pleased with Afterpay's latest sales update. That update revealed that Afterpay achieved $1 billion of monthly underlying sales in November. It also reported 6.6 million active customers at the end of the period. This was ahead of Morgan Stanley's estimates. I agree with Morgan Stanley on Afterpay and would be a buyer of its shares.

Metcash Limited (ASX: MTS)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $3.05 price target on this wholesale distributor's shares. According to the note, Goldman was pleased with the performance of Metcash's Food division during the first half of FY 2020. It also notes the emergence of positive underlying sales trends in the division. While I think that the broker makes some fair points, I'd like to see how the company handles recent contract losses before considering an investment.

Northern Star Resources Ltd (ASX: NST)

Analysts at UBS have upgraded this gold miner's shares to a buy rating with a $12.00 price target. According to the note, the broker believes that recent weakness in the Northern Star share price is a buying opportunity for investors. Whilst it acknowledges that issues with its Pogo operation are disappointing, it is confident that a turnaround is coming following a site visit. Overall, it believes that its shares are undervalued, hence today's upgrade. I think Northern Star could be a good option for investors that are looking for exposure to gold.

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 AFTERPAY T FPO. 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 Scott Phillips.

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