Once a week I like to take a look at which shares Australia's leading brokers are tipping as buys and sells.
Three shares which have found favour with brokers this week and subsequently been given buy ratings are listed below. Here's why brokers like them:
Domino's Pizza Enterprises Ltd. (ASX: DMP)
According to a note out of Morgans this week, its analysts have upgraded the pizza chain operator from a hold rating to an add rating with a $47.21 price target. Although the broker expects Australian growth to be softer this year, it expects to see European growth accelerate. However, the main attraction for the broker is valuation and I agree. At 25x estimated forward earnings I think Domino's is great value for money.
Premier Investments Limited (ASX: PMV)
A note out of Citi reveals that its analysts have retained their buy rating and $13.80 price target on the retailer's shares ahead of next week's full-year results release. Although the broker expects a weak winter fashion season to impact some of its brands, it still expects to see strong growth from its key Peter Alexander and Smiggle brands. I would agree with Citi on Premier Investments and believe it could be a great option for investors. However, it may be prudent to wait until Monday's results release before making an investment.
Syrah Resources Ltd (ASX: SYR)
Analysts at Deutsche Bank have retained their buy rating but reduced the price target on the graphite miner's shares to $4.90. According to the note, the broker estimates that the company's $110 million capital raising has reduced the value of the company's shares by approximately 15%. But with its shares currently priced at $3.51 there certainly is still considerable upside ahead for them as far as Deutsche Bank is concerned. Whilst I think Syrah has a world-class asset on its hands, I would suggest investors hold off an investment until production commences at its Balama project.
