Leading brokers have been busy once again incorporating new data and share price movements into their valuation models and recommendations.
Three shares that have come out of this favourably are listed below. Here's why brokers have given them buy ratings:
CSL Limited (ASX: CSL)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and increased the price target on the biotherapeutics company's shares to $173.00. The broker made the move after the US FDA approved its Hizentra product as the first subcutaneous immunoglobulin product available as a treatment option for chronic inflammatory demyelinating polyneuropathy. In addition to this, it has been designated as an orphan drug, which allows seven years of marketing exclusivity. Credit Suisse believes this could be accretive to earnings if the company can win a 20% share of the market. I agree with Credit Suisse on CSL and think it would be a great investment option.
Event Hospitality and Entertainment Ltd (ASX: EVT)
Analysts at Ord Minnett have retained their buy rating and $16.01 price target on the entertainment and hospitality company. The broker appears impressed by the outperformance of its Hotels and Resorts segment and expects the trend to continue for the foreseeable future. Whilst I do agree with Ord Minnett on its Hotels and Resorts segment due to the tourism boom, I continue to be disappointed by the performance of its cinemas. They have acted as a drag on its performance of late and I'll be holding off an investment until I see signs of improvement.
Premier Investments Limited (ASX: PMV)
A note out of the equities desk of Macquarie reveals that its analysts have retained their outperform rating and increased the price target on the retail conglomerate's shares to $16.90 from $15.95. The broker was pleased with the company's strong first-half result and believes its current valuation is undemanding given its Smiggle brand's strong growth prospects. I agree with Macquarie on this one and think that its high margin Smiggle and Peter Alexander brands have the potential to grow their respective earnings significantly over the next few years.
