Yesterday I had a quick look at a number of shares which had fallen foul of brokers this week and been given sell ratings or equivalents.
Today I thought I would look at the other side of the coin, at the shares which have found favour with brokers and been given buy ratings.
Three shares tipped as buys are as follows:
SEEK Limited (ASX: SEK)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and increased the price target on the job listings company's shares to $18.70. The broker has taken action following the decline in Australia's unemployment rate and stronger domestic job advertising. I'm a big fan of Seek and believe its strong market position and pricing power puts it in a great position to grow its bottom line at a solid rate over the long-term. I continue to see it as a great long-term buy and hold investment option.
Sonic Healthcare Limited (ASX: SHL)
Analysts at Morgan Stanley have retained their overweight rating on the healthcare company ahead of its annual general meeting on November 22. Furthermore, the broker has increased its price target on Sonic Healthcare's shares to $27.30. According to the note, the broker believes that restructuring and merger and acquisition plans will help the company deal with any negative impacts from fee cuts. Further, at 20x trailing earnings the broker thinks that its shares are cheap give its long-term growth opportunities and strong balance sheet. While I think Sonic Healthcare could be a good option for investors, it wouldn't be my first pick in the healthcare sector.
Santos Ltd (ASX: STO)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating and $5.00 price target on the energy company's shares. The broker appears to believe that Harbour Energy could be back with a takeover offer of $5.30 per share, though it expects the Santos board would reject this one as well. Santos has previously rejected an offer of $4.55 per share in August from Harbour Energy. While I am a big fan of Santos, it could be worth taking a bit of profit of the table following its strong run. Just in case Harbour Energy doesn't come back with an improved offer as the market expects.
