Leading brokers have once again been busy adjusting discounted cash flow models and valuations accordingly as new data becomes available.
Three shares that have fared well from this are listed below. Here's why they have been given buy ratings by leading brokers:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Deutsche Bank, it has retained its buy rating and $33.90 price target on the gaming technology company's shares ahead of its first-half results release later this week. Deutsche believes that Aristocrat Leisure could surprise to the upside thanks largely to its North American and digital operations. I agree with Deutsche on Aristocrat Leisure and think it could be a great investment. However, buying ahead of an earnings release does carry risks.
CSL Limited (ASX: CSL)
A note out of Citi reveals that its analysts have retained their buy rating and increased the price target on the biotherapeutics company's shares to a sizeable $215.00. Citi made the move after CSL upgraded its profit guidance last week. The broker believes that CSL is capable of growing earnings at an average of 20% per annum through to FY 2020. I agree with Citi on this one and think that CSL is one of the best buy and hold options on the Australian share market.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Analysts at Goldman Sachs have retained their buy rating and $8.00 price target on the airport operator's shares following its recent traffic update. According to the note, calendar year passenger movements growth of 3.8% is in line with the broker's expectations, reflecting positive underlying volume trends. Goldman believes this puts Sydney Airport on course to deliver earnings per share of 19 cents in FY 2018. I still like Sydney Airport at these levels and think it would be a good option for investors in light of the tourism boom Australia is experiencing.
