Many of Australia's leading brokers have been busy running the ruler over a number of Australian shares this week.
While some of these shares came out with sell ratings, others came out more favourably and were given buy ratings.
Two shares which brokers have tipped as buys this week are listed below:
AGL Energy Ltd (ASX: AGL)
According to a note out of Credit Suisse, its analysts have upgraded the energy company to an outperform rating with an increased price target of $27.00 following its annual general meeting yesterday. The note reveals that the broker doesn't have too many concerns over the risk of changes to government policy. Instead, Credit Suisse expects strong earnings growth from the energy provider over the next few years.
While I do think there is a danger that the government may interfere in the industry, if things stay the same way then AGL Energy should be in a great position to continue growing its bottom line at a solid rate. This could make it worth considering as an investment today.
Aristocrat Leisure Limited (ASX: ALL)
A note out of Deutsche Bank reveals that its analysts have retained their buy rating but reduced the price target on the gaming technology company's shares slightly to $27.50. According to the note, the broker is confident that Aristocrat Leisure will deliver average earnings growth of circa 26% per annum for the next three years thanks to market share gains, higher levels of recurring revenue, and its fast-growing digital portfolio.
I agree with Deutsche on this and think Aristocrat Leisure would be a great buy and hold investment. Although its shares are reasonably expensive at 30x trailing earnings, I think the level of growth Deutsche's analysts have forecast more than justifies the premium.
