With the majority of Australia's leading brokers back at work again after the Christmas break, a number of broker notes have come in thick and fast this week.
Three buy recommendations which caught my eye today are listed below. Here's why brokers think investors ought to buy these shares:
Amaysim Australia Ltd (ASX: AYS)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and $2.35 price target on this fast-growing telco company's shares. While the broker believes that growth in its telco segment is limited and faces stiff competition, it is quite bullish on the potential growth of its energy business. That is, of course, if the company can successfully cross-sell its energy products. I like Amaysim and think that investors ought to consider it today, especially considering its generous dividend.
BHP Billiton Limited (ASX: BHP)
A note out of Deutsche Bank reveals that its analysts have retained their buy rating on the mining giant's shares. The broker has also increased its price target from $29.50 to $34.50, implying potential upside of 9% for its share price. Its analysts have made the move due to rising commodity prices and their view that global demand will continue to improve. I agree with Deutsche on this one and believe BHP Billiton is a great option for investors given the strong global growth expected this year.
Qantas Airways Limited (ASX: QAN)
Analysts at UBS have retained their buy rating and $6.70 price target on the airline's shares. The broker appears to believe that recent weakness in its share price has created a buying opportunity for investors. Qantas' share price is down almost 21% since the middle of October amid rising oil prices and its removal from the MSCI Australia index. UBS believes its shares could get a boost from a return to the index and an positive earnings outlook. While I am a fan of Qantas, I think it would be prudent to hold off an investment until its half-year results are announced in February.
