It certainly has been a busy end to the week for Australia's leading brokers. Amongst the many ratings changes today there were three upgrades in particular that stood out.
Here are three shares brokers have labelled as buys today:
BHP Billiton Limited (ASX: BHP)
A research note out of Morgans reveals that its analysts have upgraded the mining giant to an add rating with a $28.19 price target. According to the release Morgans thinks that the market has overreacted to recent swings in oil and iron ore prices. Though it does acknowledge that moderation in the iron ore price could result in short-term share price declines. With increasing supply set to hit the market this year, I don't think iron ore prices will be able to remain at these high levels for much longer. As I fear this could drag down the miner's share price, I would suggest investors hold off an investment for the time being.
Fletcher Building Limited (Australia) (ASX: FBU)
This morning investment bank UBS slapped a buy rating on this building materials company. The research note reveals that its analysts believe the company's shares are trading at a significant discount to market following a disappointing first-half result. There may, however, be a good reason for this. The company's shares were placed into a trading halt this morning pending a review of the financial performance of its Construction division and the impact it may have on its previous earnings guidance.
Myer Holdings Ltd (ASX: MYR)
This department store operator has been upgraded to an outperform rating with a $1.21 price target by Macquarie. Although Myer posted a drop in sales during the first-half, Macquarie was pleased with the work management has done to cut costs. I would have to agree with the bank on this one. Although Myer still has a lot of work to do, so far I've been impressed with the results of its turnaround plan.
