These 3 ASX shares have just been named as broker buys

Brokers like the prospects of these three ASX shares…

| More on:
three children wearing superhero costumes, complete with masks, pose with hands on hips wearing capes and sneakers on a running track.

Image source: Getty Images

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

The ASX is off to a flying start today. The benchmark S&P/ASX 200 Index (ASX: XJO) has gained 0.18% to 7447 points from the open while the All Ordinaries (ASX: XAO) is also in the green.

With this comes a number of broker notes from leading investment firms covering ASX shares.

Here are three companies that analysts have labelled as buys today — and the reasons for doing so.

Scentre Group (ASX: SCG)

An update from investment bank JP Morgan covers Scentre Group's recent deals in the retail property space, which it feels the market is underappreciating.

The broker notes that Scentre Group is trading at 15x its funds from operations (FFO) and presents with a 5% distribution yield.

It suggests "[Scentre's] 14% discount to net tangible assets implies a further 10% decline in asset values transactions supporting current book values".

This, it reckons, is an unfair punishment for Scentre Group's share price. According to the broker, this could bode well for future investors.

As such, JP Morgan has lifted its price target on the Scentre Group share price by 9.4% to $3.50, implying a 12% upside potential at the time of writing.

Scentre Group shares are currently swapping hands at $3.125 cents apiece.

Computershare Ltd (ASX: CPU)

Morgan Stanley has upgraded its price target on Computershare by 20% to $21.50 in an updated analysis today.

The broker believes the provider of issuer and mortgage services has the potential to upgrade its FY22 guidance in support of its view.

Although it acknowledges "wage pressures", Morgan Stanley also notes Computershare's current "management" earnings per share (EPS) guidance that calls for a 2% growth in FY22.

This is backed by the broker's estimates on interest rate hikes, strong corporate action, and various cost-cutting exercises.

Specifically, Computershare's exposure to longer-term interest rates – up to 5 years – is attractive to the broker.

As such, Morgan Stanley forecasts a robust schedule of growth in EPS of 10% in both FY23 and FY24, helping it arrive at the $21.50 price target.

Shares in Computershare are now changing hands at $19.26 apiece, dipping into the green in early trading. As for the last 12 months, they have gained 43%.

National Australia Bank Ltd (ASX: NAB)

Economic recovery and NAB's market-leading position are key drivers to the bank's share price outlook, according to a note from Goldman Sachs.

The broker reckons that NAB's asset quality is "clean" and of a high grade. It also notes management's guidance in the bank's business and private banking divisions don't appear to impact margin performance.

Following the release of its FY21 results, Goldman was pleased by NAB's balance sheet expansion and has reiterated its buy recommendation on the ASX share.

JP Morgan agrees, comparing its earnings outlook with that of fellow Australian banks in the Big 4 club.

It too likes NAB's forecasts on its business banking segment. The broker says it "sets NAB apart, with a return on equity profile second only to CBA in the major banks".

It also reckons NAB offers the best risk/reward profile in the sector, subsequently reiterating its overweight recommendation as well.

At the time of writing, the NAB share price is commanding $30.055, climbing 4% from the open.

Should you invest $1,000 in Asx Limited right now?

Before you buy Asx Limited 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 Asx Limited 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 30 April 2025

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

Broker looking at the share price.
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 »

A man in a blue collared shirt sits at his desk doing a single fist pump as he watches the Appen share price rise on his laptop
Broker Notes

These ASX 200 stocks could rise 30% to 40%

Analysts are tipping these shares to go to the moon. Let's find out why.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Up 30% in a month, this ASX 200 tech share is 'a compelling opportunity': expert

Analysts from listed investment company WAM Capital say this ASX 200 tech stock is worth watching.

Read more »

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

View of a mine site.
Broker Notes

How much upside does Macquarie tip for Deterra Royalties shares?

Deterra Royalties offers ASX investors a different way to invest in global mining.

Read more »

Woman with $50 notes in her hand thinking, symbolising dividends.
Broker Notes

Broker reveals outlook for ASX dividend shares amid volatile market

Peter Gardner from Plato Investment Management tells ASX investors where to look for dividend income this year.

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 puts buy rating on Zip shares

Big returns could be on offer for investors according to its analysts.

Read more »