Brokers have named 3 ASX shares to buy

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.

Looking for more buy ideas? Then don't miss out on these top shares.

4 Stocks for Building Wealth After 50

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of REDBUBBLE FPO. The Motley Fool Australia has recommended Coca-Cola Amatil Limited and Ramsay Health Care Limited. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.