Top brokers up and down Australia have been busy adjusting financial models and recommendations again.
This has resulted in several shares being given buy ratings. Three that caught my eye are listed below. Here's why brokers think you should buy them:
Bingo Industries Ltd (ASX: BIN)
According to a note out of UBS, it has retained its buy rating and $3.20 price target on this leading waste management company's shares. The broker was pleased to see Queensland join other Australian states by introducing a landfill levy last week. The $70 per tonne waste levy will be introduced to stem the tide of NSW-based trucks coming across the border to dump rubbish in Queensland landfills. UBS sees this as a positive for Bingo Industries and believes it could lead to increased volumes and prices in NSW. I agree with UBS on this one and expect Bingo Industries to benefit from this development. I still consider it a great long-term investment.
Crown Resorts Ltd (ASX: CWN)
A note out of Goldman Sachs reveals that it has retained its buy rating and $15.20 price target on the casino and resorts operator's shares. According to the note, Goldman believes the casino industry is positioned well to benefit from a recovery in VIP spending in 2018. Crown Resorts is the broker's preferred pick within the ANZ casino industry thanks to stronger spending in Victoria, lower disruption risk, and lower gearing. While it isn't my favourite share on the ASX, I do agree that it would be a great option for investors wanting exposure to the casino or tourism market.
Xero Limited (ASX: XRO)
Analysts at Morgan Stanley have initiated coverage on this accounting software provider with an overweight rating and $50.00 price target. The broker has made the move after taking a deep dive into the sector and finding that the best cloud-based players are going to take market share away from the rest. One unlucky loser appears to be MYOB Group Ltd (ASX: MYO) which the broker has initiated coverage on with an underweight rating and $2.80 price target. I have to agree with Morgan Stanley on Xero and believe it could be a great buy and hold investment.