Despite Christmas drawing ever closer, it has been yet another busy week of broker moves.
Three buy ratings which caught my eye today are listed below. Here's what you need to know:
BHP Billiton Limited (ASX: BHP)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and increased the price target on the mining giant's shares to $32.40. The broker made the change after its analysts made positive revisions to their short-term oil price forecasts. A tight market in 2018 is expected to give BHP's bottom line an additional boost. I completely agree with Macquarie on this one and believe BHP is the best pick in the sector at the moment.
Caltex Australia Limited (ASX: CTX)
Analysts at UBS have upgraded the fuel retailer to a buy rating and raised the price target on its shares to $39.10 after the ACCC opposed BP's purchase of the Woolworths Group Ltd (ASX: WOW) fuel network. While the acquisition story may not be done just yet, the broker appears to believe there's a chance that Caltex will retain some or even all of its current supply agreement with Woolworths. I would have to agree with UBS on Caltex. The company has worked hard to cut costs to offset the expected loss of the supply contract. If it ends up retaining even a bit of it then it stands to profit.
Smartgroup Corporation Ltd (ASX: SIQ)
Another note out of Macquarie reveals that its analysts have retained their outperform rating and raised the price target on this fleet management provider's shares to $11.20 following its latest acquisition and trading update. Macquarie believes that the acquisition of Fleet West complements its existing business and is great value. While I was impressed with Smartgroup's performance this year and its recent acquisitions, I feel there are better value options in the industry for investors to choose from.
