The trading week may be coming to an end, but brokers have been as busy as ever making changes to their financial models and recommendations.
Three shares that have been given buy ratings are listed below. Here's why brokers are tipping them to climb higher:
Coca-Cola Amatil Ltd (ASX: CCL)
According to a note out of Credit Suisse, it has retained its outperform rating and $9.80 price target on the beverage company's shares. The broker believes that the disappointing performance of its Indonesian business could be over after the consumer outlook in the country improved. Although the improvements will be too late for FY 2018, Credit Suisse expects the segment's earnings to return to growth in FY 2019. If Credit Suisse's prediction is correct then it could make Coca-Cola Amatil a good option. However, I'll be waiting for proof of these improvements before investing.
Ramsay Health Care Limited (ASX: RHC)
A note out of Deutsche Bank reveals that its analysts have upgraded Ramsay to a buy rating from hold with a price target of $63.92. Although Deutsche expects the next couple of years to be a challenge for the private hospital giant, it believes its valuation is attractive in comparison to some of its global peers. Especially after its sizeable share price decline yesterday. Despite this decline it would have to go a lot lower before I would be interested in picking up shares.
Redbubble Ltd (ASX: RBL)
Analysts at Goldman Sachs have initiated coverage on this leading online print-on-demand marketplace operator with a buy rating and price target of $1.90. According to the note, the broker expects Redbubble to increase revenue by a compound annual growth rate of 26% between FY 2017 and FY 2021 thanks to the network effect, product range increases, and improving penetration rates in new geographies. And while Goldman doesn't expect the company to be profitable until FY 2020, it sees no need for it to raise capital. I like Redbubble and would have to agree with Goldman on this recommendation.
