Once again many of Australia's leading brokers have been busy crunching numbers and adjusting their discounted cash flow models as new data becomes available.
Three shares which have found favour with them this week are listed below. Here's why they have been upgraded to buy ratings by brokers:
Automotive Holdings Group Ltd (ASX: AHG)
According to a research note out of Credit Suisse, Automotive Holdings has been upgraded to an outperform rating with a $4.35 price target. Whilst its analysts appeared to be disappointed with its half-year result, they believe management's plan to try and improve the performance of its refrigerated logistics business is the right move. I'm not a fan of Automotive Holdings and believe there's a lot of work to be done until its overall performance heads in the right direction. I would suggest investors look at industry rival AP Eagers Ltd (ASX: APE) instead.
RCG Corporation Ltd (ASX: RCG)
Analysts at Morgans have upgraded RCG to an add rating with a $1.32 price target. Although Morgans was left a touch underwhelmed by RCG's first-half results, they see reasonable upside potential following the post-results sell-off. I would have to agree with them on this one. At just over 13x estimated FY 2017's earnings I think RCG could prove to be a good investment. Especially with its shares expected to provide a full-year fully franked 5.8% dividend this year.
Super Retail Group Ltd (ASX: SUL)
A research note out of Citi reveals that its analysts have upgraded the retailer to a buy rating with an $11.90 price target. Whilst the company's recent half-year results were in-line with expectations, its analysts believe its shares are trading at a discount to its peers. I agree with this view and think Super Retail is one of the better options in the retail industry. The company's auto businesses in particular are a standout in my opinion.
