With a number of acquisitions being undertaken, quarterly reports being released, and annual general meetings taking place, brokers up and down Australia have no doubt been very busy crunching numbers and adjusting their discounted cash flow models this week.
Three shares which have found favour with brokers are listed below. Here's why they have been classed as buys:
BT Investment Management Ltd (ASX: BTT)
According to a note out of Morgan Stanley, the broker has retained its outperform rating on this leading fund manager's shares. However, it has cut its price target down to $12.70 from $13.50, which is still approximately 14.5% higher than the current share price. While Morgan Stanley expects BTIM to deliver a strong full-year result, it does have concerns that its JO Hambro business could be experiencing a slowdown in fund inflows. I like BTIM and think it is worth considering, especially given the generous dividend its shares provide.
IOOF Holdings Limited (ASX: IFL)
A note out of Credit Suisse reveals that its analysts have upgraded the financial services company's shares to an outperform rating following the acquisition of the Australia and New Zealand Banking Group (ASX: ANZ) wealth management business. The broker has also lifted IOOF's price target to $13.40 on the belief that the acquisition will provide it with an opportunity for significant organic growth. I would agree with Credit Suisse on this one and believe IOOF could be in the buy zone.
Nufarm Limited (ASX: NUF)
Analysts at Morgan Stanley have initiated coverage on the crop protection and seed technologies company with an outperform rating and $10.40 price target. According to the note, the broker believes that the market has overlooked Nufarm's transformation into a quality business. Whilst it isn't a company which I follow closely, at 14x estimated FY 2018 earnings, it certainly could be classed as good value if the broker's forecasts are accurate. Morgan Stanley expects Nufarm to return to growth again this year and build on it next year.
