Top brokers name 3 ASX shares to buy

With most brokers taking a break over the holiday period, research notes are few and far between at the moment.

But don’t worry because listed below are three recent broker buy recommendations that still have plenty of upside potential.

Here’s why brokers think these ASX shares are in the buy zone:

Qantas Airways Limited (ASX: QAN)

According to a note out of Morgans, its analysts have an add rating and $8.50 price target on this airline operator’s shares. Morgans sees a lot of value in the Qantas share price at the current level. Particularly given its expectation that pent-up travel demand will underpin further EBITDA growth over FY24/25. Overall, the broker believes the discount being applied to Qantas’ shares is unwarranted. The Qantas share price is trading at $6.23 this afternoon.

REA Group Limited (ASX: REA)

A note out of Goldman Sachs reveals that its analysts have a conviction buy rating and $159.00 price target on this real estate listings company’s shares. Goldman remains positive on REA Group’s ad yield outlook and is expecting this to underpin modest EBITDA growth in FY 2023 and then a 19% jump in FY 2024. The latter is ahead of analyst consensus estimates. The REA share price is fetching $110.92 this afternoon.

Woolworths Group Ltd (ASX: WOW)

Another note out of Goldman Sachs reveals that its analysts have a conviction buy rating and $41.70 price target on this retail giant’s shares. The broker appears pleased with Woolworths’ decision to acquire a 55% stake in pet accessories and food retailer Petspiration Group. It sees the transaction as an incrementally positive step in the evolution of its eco-system strategy. Goldman also highlights that the transition from liquor retail and gaming/hotels into higher growth pet retail is in line with its strategy. The Woolworths share price is trading at $33.10 on Thursday.

The post Top brokers name 3 ASX shares to buy appeared first on The Motley Fool Australia.

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More reading

• Top ASX shares to buy in January 2023
• Buy these growing ASX 200 dividend shares in 2023: experts
• The Qantas share price soared 20% in 2022. Can it maintain altitude in 2023?
• Here’s how I’ll be investing my money in ASX shares in 2023
• Can these 2 ASX 200 shares crush the market again in 2023?

Motley Fool contributor James Mickleboro has no position 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 recommended REA Group. 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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