As always many of Australia’s leading brokers and investment banks have been busy rerating many of the shares on the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).

In the last couple of days two shares have come under close scrutiny. Thankfully for shareholders of one them, its shares came out with a buy rating. Things weren’t quite as positive for the other share unfortunately, as you’ll see below.

Flight Centre Travel Group Ltd (ASX: FLT)

A research note out of global investment bank UBS reveals that its analysts have reiterated their buy rating on Flight Centre and increased their price target to $41.50 from $39.40. At the time of writing its shares were changing hands at $35.91, indicating the possibility of upside potential ahead for investors.

I would have to agree with UBS on this one. I believe the issues which Flight Centre has been facing this year are only temporary and expect things to pick up in due course. Softening demand brought on by Brexit, the election, and the Zika virus are all firmly behind the company now.

Furthermore, the rise of online travel agents such as Webjet Limited (ASX: WEB) is undoubtedly a threat, but Flight Centre is not purely a bricks and mortar travel agent. The company has made two acquisitions in the last 12 months to bolster its presence online – BYOjet and StudentUniverse.

I expect that in the long-term these acquisitions will prove to be lucrative and should help the company continue growing earnings at a solid rate for some time to come.

Sims Metal Management Ltd (ASX: SGM)

According to a research note from investment bank Goldman Sachs, its analysts have downgraded Sims Metal Management to a sell rating with an $8.66 price target.

With the global metals company reliant on ferrous secondary recycling for around 65% of its sales, I would agree with Goldman’s view that there could be trouble ahead if rolling mills continue to choose low-cost and higher quality billet from China and Russia ahead of its own offering.

Considering its shares are trading at 31x full year earnings, this is certainly one to avoid right now in my opinion.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.