The Easter break may be just a matter of a few hours away, but that hasn't stopped brokers from working hard on new recommendations today.
Three buy recommendations that caught my eye are listed below. Here's why they have found favour with brokers:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of the equities desk of Macquarie, its analysts have retained their outperform rating on the iron ore producer's shares after it downgraded its price realisation guidance. The broker has, however, cut the price target on Fortescue's shares to $5.50 from $5.80. Macquarie's analysts appear to believe that the discount on its iron ore will lessen in FY 2019 and has forecast it to be 72% of the benchmark 62% fines. At present Fortescue is selling produce at 62% of the benchmark price. I would class Fortescue as a hold at the moment until there are signs of stabilisation or improvements in prices.
Genworth Mortgage Insurance Australia (ASX: GMA)
Another note out of Macquarie reveals that its analysts have retained their outperform rating and $3.50 price target on the lenders mortgage insurance provider's shares. Macquarie believes that the market has priced Genworth Mortgage Insurance as though there is a housing market crisis on the horizon. As it doesn't expect one to occur, its analysts think that this is a buying opportunity for investors. Although I'm not a fan of the company, I do think that Macquarie could be onto something with this one.
Rio Tinto Limited (ASX: RIO)
Analysts at UBS have retained their buy rating and $90.00 price target on the mining giant's shares after it announced the sale of its stake in the Kestrel coal mine for US$2.25 billion. According to the note, the price that Rio Tinto received was greater than the broker predicted. It expects these funds to be returned to shareholders through share buybacks. I would have to agree with UBS on this one and think that Rio Tinto is a great option for investors, especially after its recent share price weakness.
