Once a week I like to take a look at which shares leading brokers across Australia are recommending investors buy and sell.
Following recent developments and share price movements, the three shares below have found favour with brokers. Here's why they have given them buy ratings:
BT Investment Management Ltd (ASX: BTT)
According to a note out of the Macquarie equities desk, its analysts have upgraded this leading fund manager to an overweight rating with a $12.05 price target. Macquarie appears to be impressed with BTIM's fund inflows this year which have outperformed its 5% performance benchmark. Furthermore, a reasonably sharp drop in its share price has left it at an attractive level to make an investment according to the note. Whilst I would agree that BTIM looks to be good value for money, I plan to stay away for the time being due to concerns over how the Brexit may impact its business.
Incitec Pivot Ltd (ASX: IPL)
Analysts at UBS have upgraded this leading industrial explosives, chemicals, and fertilizers company to a buy rating with a $4.00 price target. The broker believes that the bottoming of fertilizer prices and its work on cost controls has put it in a favourable position. If fertilizer prices have bottomed then Incitec Pivot could prove to be a good investment. But with its shares trading at 23x trailing earnings, I wouldn't be in a rush to buy shares just yet.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of Morgan Stanley this morning reveals that its analysts have reiterated their overweight rating and $14.00 price target on this leading wine company's shares. According to the note, Morgan Stanley believes that its 2016-17 vintages provide it with a strong earnings outlook that should offset weaker 2014-15 vintages. Furthermore, the investment bank is bullish on its prospects in Asia, believing that its Asia business is still in its infancy and has significant room to grow. I would have to agree with Morgan Stanley on this one. As well as this, I believe the premiumisation strategy it has taken has been a masterstroke which will result in strong long-term earnings growth and much wider margins.
