I think it's fair to say that there are a lot of shares for investors to choose from on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). So much so it can be difficult deciding which shares to research with a view to add to your portfolio.
Luckily teams of analysts across the country do a lot of the hard work so you don't have. Here are three new buy recommendations of note according to CommSec's analyst consensus recommendations:
Premier Investments Limited (ASX: PMV)
The owner and operator of retail brands including Peter Alexander, Smiggle, and Just Jeans was upgraded by brokers to a consensus strong buy. As far as I am concerned it is the Peter Alexander and Smiggle brands which stand out head and shoulders above the rest. In the first half of its fiscal year the Peter Alexander brand recorded sales of $89.1 million, up 22.5% on the same period a year earlier. The Smiggle brand performed even better, with global sales growth of 46.5% to $109 million. It is worth noting that there are 42 Smiggle stores based in the UK, so the recent depreciation of the British pound could slow its impressive growth down a touch. Its shares are down over 13% in the last three months, making it great value now in my opinion.
Spotless Group Holdings Ltd (ASX: SPO)
Facility services and laundry operator Spotless Group has also been given a consensus strong buy rating by brokers. At the end of May the company revealed that it is planning the sale of its laundries business. According to the Australian Financial Review, analysts at Citi have estimated the sale could fetch upwards of $666 million. I believe the sale of its struggling laundries business would fit in with management's strategy reset to accelerate growth. Whilst the sale of its laundries business could be a catalyst to take the share price higher, I don't believe it is enough to warrant making an investment today.
Seven Group Holdings Ltd (ASX: SVW)
The diverse operating and investment company was upgraded by Goldman Sachs to a buy this week with a $6.50 price target. As the licenced dealer for Caterpillar in Western Australia, NSW, ACT, and five Chinese provinces, analysts at Goldman Sachs believe the company will start to benefit from planned mine production growth. It also cites its strong balance sheet and 6.7% fully franked dividend as another factor for the recommendation. Conditions do look to be much improved for Seven Group and the dividend is strong, but personally I feel it is a little soon for an investment.
