Top brokers name 3 ASX shares to buy today

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

CAR Group Limited (ASX: CAR)

According to a note out of Bell Potter, its analysts have retained their buy rating and $42.20 price target on this auto listings company’s shares. It notes that the CAR Group share price has been caught up in tech sector volatility recently, dragging it down to an attractive level. Bell Potter highlights that its shares trade at a significant discount to fellow ASX-listed classifieds platforms. Outside this, it likes the carsales.com.au owner due to its ability to generate cash flows that support growth investments and shareholder returns simultaneously. The CAR Group share price is trading at $31.89 on Wednesday afternoon.

Coles Group Ltd (ASX: COL)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $26.10 price target on this supermarket giant’s shares. The broker has been out visiting Coles’ food manufacturing facilities. It notes that the company has the capacity to manufacture 970 tonnes of cooked products and 1.5 million meals a week. Coles has called out ready-made meals as a key growth area in the future. Speaking of growth, Macquarie believes that its supply chain investment, operational execution, and market share gains will help support an earnings per share compound annual growth rate of 10% over the next three years. The Coles share price is fetching $21.76 at the time of writing.

Megaport Ltd (ASX: MP1)

Another note out of Macquarie reveals that its analysts have retained their outperform rating on this network solutions company’s shares with an improved price target of $21.70. Macquarie notes that the recent acquisition of Latitude expands the immediate addressable share of customer wallet. It points out that customers already consume compute products, but Megaport has not historically sold compute. Latitude’s product offering is highly complementary to the existing product set and offers a direct position in a large and fast-growing end market. Stripe, Mercado Livre, and Grok are new customer wins. It estimates that Bare Metal as a Service (BMaaS) is a large, end market currently worth US$15 billion, but growing rapidly. Combined with the stabilisation of core revenue, Macquarie believes Megaport is well-placed for long term growth. The Megaport share price is trading at $13.62 today.

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

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Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Megaport. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.