Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX 200 shares are in the buy zone:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of UBS, its analysts have retained their buy rating and NZ$22.00 (A$20.55) price target on this fresh milk and infant formula company’s shares. Although the broker suspects that market share gains have slowed, it remains confident that a2 Milk Company is on course to deliver a strong result in FY 2020. In addition to this, UBS isn’t concerned by the recent launch of a2-only products from rivals such as Bellamy’s. It believes a2 Milk Company’s strong brand loyalty will help it fend off the competition. I agree with UBS and believe a2 Milk Company would be a great option for investors.

Nearmap Ltd (ASX: NEA)

Analysts at Goldman Sachs have retained their buy rating and lifted the price target on this aerial imagery technology and location data company’s shares to $2.55. According to the note, the broker was pleased with Nearmap’s market update on Thursday. It is performing better than it expected, which has led to Goldman increasing its forecasts. The broker is now forecasting its annualised contract value growing by a compound annual growth rate of 18% between FY 2019 and FY 2022. The broker also notes that Nearmap has a $2.9 billion opportunity in its current markets, which is materially more than its estimate for revenue of $130 million in FY 2022. I agree with Goldman Sachs and feel Nearmap could be a great long term option.

Telstra Corporation Ltd (ASX: TLS)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but trimmed the price target on this telco giant’s shares slightly to $3.90. The broker has reduced its earnings estimates slightly to account for negative impacts of the pandemic. Nevertheless, Macquarie believes Telstra will continue to generate sufficient cash flow to maintain its 16 cents per share dividend over the coming years. This equates to a fully franked 4.9% dividend yield. I think Macquarie is spot on and Telstra remains a great option for investors. Especially those in search of income.

More reading

• Ready to invest your first $1,000? Try these 2 ASX shares
• Should you worry about geopolitical events in investing?
• 3 cheap ASX 200 shares I’d buy today
• ASX 200 down 1.2%: Westpac tumbles, Appen reaffirms guidance, Costa CEO to retire
• Will the Wesfarmers share price climb higher in 2020?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. and Telstra Limited. The Motley Fool Australia owns shares of A2 Milk. 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.

The post Brokers name 3 ASX 200 shares to buy right now appeared first on Motley Fool Australia.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is being weighed down by profit taking in the banking sector. At the time of writing the benchmark index is down 1% to 5,792.5 points.

Four shares which have not let that hold them back are listed below. Here’s why they are charging higher:

The Afterpay Ltd (ASX: APT) share price is up almost 2.5% to $47.15. Investors appear to be taking advantage of a pullback in the payments company’s share price on Thursday to top up their positions. Profit taking led to Afterpay’s shares sliding around 7% yesterday.

The Austal Limited (ASX: ASB) share price is up over 5% to $3.20 after upgrading its revenue and earnings guidance. This morning the shipbuilder advised that its FY 2020 revenue will hit ~$2 billion, while its earnings before interest and tax (EBIT) will be “no less than $125 million”. As a comparison, the company was previously expecting revenue of at least $1.9 billion and EBIT of no less than $110 million.

The Kogan.com Ltd (ASX: KGN) share price has jumped 7% to a record high of $11.32. This is despite there being no news out of the ecommerce company on Friday. However, its shares have been on a tear this month after it revealed very strong sales and profit growth during the pandemic. Investors appear optimistic that the crisis has accelerated the structural shift to online shopping.

The Northern Star Resources Ltd (ASX: NST) share price has surged 7.5% higher to $14.78. Investors have been buying the gold miners today after the price of the precious metal rebounded overnight. This was driven by escalating tensions between the United States and China. It isn’t just Northern Star rising strongly. The S&P/ASX All Ordinaries Gold index is up a solid 3.2% at the time of writing.

More reading

• ASX 200 down 1.2%: Westpac tumbles, Appen reaffirms guidance, Costa CEO to retire
• The best performing ASX 200 stock today may have more room to climb
• 10 quality ASX shares to buy in June
• 5 things to watch on the ASX 200 on Friday
• 4 ASX fintech shares to make you rich

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 Austal Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

The post Why Afterpay, Austal, Kogan, & Northern Star shares are charging higher appeared first on Motley Fool Australia.

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Investing your first $1,000 into the share market is a very exciting event in anyone’s life. But it can also be nerve-racking. Where to put it? There are literally thousands of investments to choose from, just on the ASX alone.

That’s why I’ve found 2 ASX shares that I would be very happy to recommend to a beginner with their first $1,000 to spend. Both shares can be bought and held with very little active management or effort, which I think is a perfect arrangement for anyone wanting to dip their toes into ASX shares for the first time.

Magellan High Conviction Trust (ASX: MHH)

This share is actually a listed investment trust (LIT), which is a collection of underlying shares that is managed on investors’ behalf. In this way, I think it’s a great option for a beginner’s first $1,000 investment. Magellan High Conviction Trust aims to amass a concentrated portfolio of 8–12 of the shares that Magellan’s management team views as the ‘best in the world’. These currently include well-known names like Google-owner Alphabet, Microsoft, Visa and Alibaba.

These companies are world-class and have a truly global presence. As such, I think this is a great investment for your first $1,000 – or for any investor, in truth. MHH also aims to pay out a 3% cash distribution each year, which can either be taken in cash as some passive income, or else re-invested for a discount.

VanEck Australian Equal Weight ETF (ASX: MVW)

One of the criticisms I hear most of your typical S&P/ASX 200 Index (ASX: XJO) exchange-traded funds (ETFs) is regarding their high concentration towards ASX banks and miners.

Whilst this is true of a conventional ASX 200 ETF, this fund from VanEck operates a little differently. That’s because it assigns each company in the ASX 200 an equal investment, rather than giving larger companies a bigger slice of the pie. As such, your larger shares like Commonwealth Bank of Australia (ASX: CBA) get the same slice of this ETF as your smaller companies like WiseTech Global Ltd (ASX: WTC).

Since this ETF’s inception in 2014, it has comfortably outperformed the ASX 200 index, so that’s enough validation for your first $1,000 investment in itself, in my view.

As such, I think this equal-weighted ETF is a great choice for any beginner investor, who wants an equally cut ‘slice of Australia’. Again, it’s managed entirely on your behalf – meaning you can just ‘set and forget’ it if you so wish.

More reading

• 3 cheap ASX 200 shares I’d buy today
• ASX 200 down 1.2%: Westpac tumbles, Appen reaffirms guidance, Costa CEO to retire
• Will the Wesfarmers share price climb higher in 2020?
• 2 ASX 200 tech shares I’d like to buy today
• Why I think the CSL share price is a strong buy today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Magellan High Conviction Trust, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares) and Visa. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended Alphabet (A shares). 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.

The post Ready to invest your first $1,000? Try these 2 ASX shares appeared first on Motley Fool Australia.

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