Many of Australia's leading brokers have been busy once again crunching numbers and adjusting discounted cash flow models accordingly.
Three shares which have come out of this favourably are listed below. Here's why they have been given buy ratings:
Brambles Limited (ASX: BXB)
According to a note out of Ord Minnett, the broker has retained its buy rating and $12.65 price target on the supply-chain logistics company's shares. Ord Minnett believes that its share price could be given a lift in the near future thanks to a better-than-expected performance from its CHEP business in the United States. While I wouldn't be a buyer of its shares just yet, I do think that if things improve in the U.S. then Brambles could be worth another look.
Computershare Limited (ASX: CPU)
A note out of Credit Suisse this week reveals that its analysts have retained their outperform rating on the shares of the shareholder, employer, and secretarial services provider. According to the note, the broker believes that the recent rate rise in the United Kingdom is a positive for Computershare and could result in a slight lift in profits in FY 2018. I think Credit Suisse is spot on with this assessment and believe that rising UK rates and the strengthening British pound could be a big positive for the company's future performance.
Westpac Banking Corp (ASX: WBC)
Analysts at Morgans have retained their add rating but reduced their price target on the banking giant's shares to $37.00. According to the note, while Westpac fell short of the broker's cash earnings forecast, it was impressed by its loan growth and margin expansion. While I agree with Morgans that its loan book and margin expansion were positives, I think fair value is around the $34.00 mark. For that reason I would only suggest buying its shares if they fell below $31.00.
