With earnings season now seemingly in overdrive, this week there have been a great number of buy, hold, and sell recommendations being made by brokers across the country.
Three which jumped out at me this week are listed below. Here's why brokers think they are in the buy zone:
Aconex Ltd (ASX: ACX)
According to a research note out of Citi, its analysts have retained their buy rating and increased their price target on the software-as-a-service company's shares to $4.82. Although Citi was not blown away by its recent full-year results, its appears satisfied with management's revenue growth guidance for FY 2018 of 15% to 19%. I'd agree with Citi on this one and believe Aconex could be a great buy and hold investment option. Especially now the company's shares have shed 10% of their value since this time last week.
Greencross Limited (ASX: GXL)
A note out of UBS reveals that its analyst have retained their buy rating on the integrated pet care company's shares. They have however cut back their price target a touch to $7.00. According to the note, the investment bank felt Greencross' results were reasonably solid. The highlight for them was its strong cash flow generation, though there were concerns about weakening margins. Overall, I felt Greencross delivered a strong result and would class it as a buy today as well. While the weaker margins were a disappointment, this was largely down to costs associated with the doubling of its in-store clinic footprint. I expect margins will start to improve again in the second-half of FY 2018.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Analysts at Morgan Stanley have retained their overweight rating and raised the price target on the airport operator's shares to $7.37 following the release of its first-half result. The broker appears confident that Sydney Airport will have a strong second-half thanks to strong growth in international passenger numbers. Whilst I think its shares are a touch expensive and investors may find better value elsewhere, there's no doubt that Sydney Airport is in a great position to benefit from the tourism boom. This could make it a great long-term buy and hold investment option.
