Although it has been a reasonably quiet week in terms of broker moves, a number of research reports have caught my eye.
Three buy recommendations of note are summarised below. Here's why brokers think these shares are in the buy zone:
Origin Energy Ltd (ASX: ORG)
According to a research note out of UBS, its analysts have retained their buy rating and $8.50 price target on the energy company's shares following the sale of Lattice Energy to Beach Energy Ltd (ASX: BPT). The broker appears pleased with the positive impact the sale will have on its balance sheet and still forecasts strong earnings growth in FY 2018. Whilst it wouldn't be my first choice in the industry, I do see value in its shares today.
OrotonGroup Limited (ASX: ORL)
A note out of Citi reveals that its analysts have retained their high risk buy rating and $1.20 price target on the retailer's shares following the release of its full-year results. According to the note, the result was in line with the broker's expectations and it remains cautiously optimistic on FY 2018 despite the currency headwinds it faces. While Citi's price target does imply significant upside which could make it worth the risk, I feel there are more rewarding investments that could be made in the retail industry right now.
Star Entertainment Group Ltd (ASX: SGR)
Ord Minnett has retained its buy rating and reduced its price target on the casino and resorts operator slightly to $5.90. According to the note, the broker remains positive on Star Entertainment's prospects despite its belief that its Sydney operation has had a soft start to FY 2018. I would agree with the broker on this one and believe Star Entertainment is a great investment option at the current share price. Especially with the tourism boom showing no signs of slowing.
