With a number of companies reporting updates and holding their annual general meetings this month, brokers up and down Australia have been busy adjusting their financial models and ratings for many leading companies.
Three shares which came out favourably are listed below. Here's why leading brokers think they are in the buy zone:
Macquarie Group Ltd (ASX: MQG)
According to a note out of Credit Suisse, its analysts have upgraded the investment bank's shares to an outperform rating and increased their price target to $105.00. The broker appears to be impressed with Macquarie's improved profitability and balance sheet. I would agree with Credit Suisse on this one. The stars certainly seem to be aligning for Macquarie at the moment and it could prove to be one of the best investments in the industry.
Orocobre Limited (ASX: ORE)
A note out of Citi reveals that its analysts have upgraded the lithium miner to a buy rating with an increased price target of $5.50. Although its recent quarterly update was a little weaker than the broker expected, it has overlooked this due to its improved cash margins and balance sheet. While I am a fan of Orocobre, I'd prefer to buy in at a cheaper price. In light of this, I would class it as a hold.
ResMed Inc. (CHESS) (ASX: RMD)
Analysts at UBS have retained their buy rating and increased the price target on the sleep treatment company's US-listed shares to US$90.00. Based on the current exchange rate and the 10:1 ratio, I estimate this to be the equivalent of an $11.73 price target for its Australian shares. I was once again impressed with ResMed's quarter and believe it has all the hallmarks of a great buy and hold investment option.
