Yesterday I had a look at a few shares which have been given sell ratings by leading brokers.
Whereas today I thought I would take a quick look at the shares which have found favour with brokers this week and been given buy ratings.
Here are three shares tipped as buys by brokers:
Nextdc Ltd (ASX: NXT)
According to a note out of Morgans, its analysts have retained their add rating and increased the price target on the data centre operator's shares to $6.25. The broker appears to be pleased with the confidence management showed in the company's prospects at its annual general meeting. Further, its analysts have increased the price target on its shares in response to the rising multiples that its international peers trade on. I agree with Morgans and believe NEXTDC could be one of the best buy and hold options on the market.
RCG Corporation Ltd (ASX: RCG)
A note out of Citi reveals that its analysts have upgraded the footwear retailer to a buy rating following yesterday's trading update. The broker has also increased its price target on its shares slightly to 95 cents. Citi appears to have been impressed with its like-for-like sales growth momentum heading into the important Christmas trading period and believes its shares trade on an undemanding earnings multiple. While Amazon is likely to be a threat, I do believe that this has been more than priced in now. In light of this, its solid performance year-to-date, and its generous dividend, I would agree that RCG is a buy.
Webjet Limited (ASX: WEB)
Analysts at Ord Minnett have retained their buy rating but reduced the price target on Webjet's shares to $14.35 following its annual general meeting presentation this week. Although the online travel agent provided full-year guidance that was short of the broker's expectations, it believes there is a chance it will outperform it. Again, I would have to agree with this broker recommendation. Webjet may have disappointed this week, but its overall business is still strong and has significant growth potential. At the current share price I think it is great value for money.
