Yesterday I looked at a few shares which had fallen out of favour with brokers and been given the unwanted sell rating.
Today I thought I would look at the other side of the coin and see which shares have found favour with brokers and been given the much-coveted buy rating.
Three shares rated as buys this week are listed below:
Breville Group Ltd (ASX: BRG)
According to a note out of Ord Minnett, its analysts have retained their buy rating and $15.60 price target on the appliance maker’s shares after President Trump announced new trade tariffs. The broker appears pleased to see that Trump’s focus has been largely on industrial goods and nothing that will impact Breville greatly. It is, however, concerned that trade tensions could weigh on sentiment and hurt Breville’s share price performance in the near term. While a trade war is certainly a risk that needs to be considered, I remain confident Breville will be largely unaffected and would suggest investors look at buying in on any notable share price weakness.
Rio Tinto Limited (ASX: RIO)
Analysts at UBS have retained their buy rating and $90.00 price target on this mining giant’s shares after visiting its iron ore operation in Western Australia. While there wasn’t any new developments as such, the broker appears pleased with the company’s focus on value ahead of volume and improvements to infrastructure. UBS has been an admirer of Rio Tinto for some time now and has previously predicted significant share buybacks following its asset sales. I would agree with UBS on Rio Tinto and think it could be a great option for investors looking to gain exposure to the resources sector.
Qantas Airways Limited (ASX: QAN)
A note out of Citi reveals that its analysts have retained their buy rating and $7.90 price target on the airline’s shares. According to the note, the broker has a lot of confidence in the company’s international segment following its third quarter update last month. Furthermore, it doesn’t appear overly concerned that rising fuel costs will be too much of a drag on its performance and believes these can be mitigated. While Qantas certainly isn’t the bargain buy it was 12 months ago, I still see a lot of value in its shares at present. Just as long as oil prices don’t rise too much from current levels.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.