It looks as though some brokers were working overtime over the Easter break and have been busy adjusting their recommendations.
Three shares that fared well are listed below. Here’s why they have been given buy ratings:
Crown Resorts Ltd (ASX: CWN)
According to a note out of Citi, its analysts have retained their buy rating but lifted the price target on the casino and resort operator’s shares to $14.50 from $13.75. Citi has made the move after factoring in recent asset sales, lower depreciation and interest expense, and share buyback expectations for FY 2019. I would agree with Citi on this recommendation and think that Crown is a great option for investors and a great way to play the tourism boom thematic.
Star Entertainment Group Ltd (ASX: SGR)
Analysts at Morgan Stanley have retained their overweight rating and $6.00 price target on this casino and resort operator after it announced an equity placement with Chow Tai Fook Enterprises and Far East Consortium International. The broker believes that the 10% placement is a positive step that will align all parties’ interests in the long-term and provide the funds to accelerate the company’s growth. Although the placement is dilutive, the broker expects it to add enough value to justify this. I think Morgan Stanley is spot on with this one.
Whitehaven Coal Ltd (ASX: WHC)
A note out of UBS reveals that its analysts have retained their buy rating and $5.50 price target after the company announced the acquisition of a 75% interest in the Winchester South coal project from Rio Tinto Limited (ASX: RIO). The broker believes that there is potential for an open cut mine with a mine life of 20 to 30 years to be developed at the site. While it wouldn’t be my first preference in the mining sector, I think Whitehaven does look reasonably attractive at the moment.