With earnings season on the horizon, leading brokers have been as busy as ever preparing forecasts and recommendations.
Three shares which have fared well and been given buy ratings are listed below. Here's why brokers think you should buy these shares:
BHP Billiton Limited (ASX: BHP)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and lifted the price target on the mining giant's shares to $38.00. The broker has done this after upgrading its bulk commodity price forecasts amid strong demand and supply restrictions. While I do agree that BHP Billiton is a buy, I'd be pleasantly surprised if its shares were to reach Macquarie's target which implies potential upside of approximately 24% for its shares over the next 12 months.
Catapult Group International Ltd (ASX: CAT)
Analysts at Morgans have retained their add rating and $2.97 price target on the sports analytics company's shares following yesterday's quarterly update. The broker was pleased to see its cash flows come in ahead of expectations and believes that the company is on course to achieve its full-year guidance. As I said yesterday, I'm a big fan of Catapult but I'm hanging back until it is clear the company can operate a highly profitable business.
SEEK Limited (ASX: SEK)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating on the job listings company following a review of the media sector. Further, the broker has lifted its price target on SEEK's to $21.50, believing it will be a winner from the shift of ad spending from old media to new technologies. REA Group Limited (ASX: REA) was also named as a share to buy for the same reason. I think SEEK is a good long-term option for investors and expect it to deliver decent returns over the next few years thanks to this trend.
