Brokers have been as busy as ever this week with countless upgrades and downgrades being released.
Three shares given buy ratings which caught my eye are listed below. Here’s why brokers are bullish on these shares:
Credit Corp Group Limited (ASX: CCP)
According to a note out of Morgans, it has upgraded this receivables management company’s shares to an add rating from hold and placed a price target of $21.14 on them. The broker made the move after deciding that a recent anonymous short report did not raise any legitimate concerns. Instead, the broker thinks that Credit Corp’s fundamentals are strong and its medium-term growth profile is positive. While I agree that the short thesis was nothing to worry about, it isn’t my favourite share on the market.
Flight Centre Travel Group Ltd (ASX: FLT)
Analysts at UBS have retained their buy rating on Flight Centre’s shares but lifted the price target on them to a sizeable $69.00. According to the note, the broker believes that strong travel markets have put it in a position to achieve its medium term targets. In addition to this, UBS expects the positive trading conditions could lead to the company outperforming its earnings growth guidance this year. While I’m not a buyer of its shares on valuation grounds, if Flight Centre does grow earnings at a quicker than expected rate then it could end up being be a good investment.
Northern Star Resources Ltd (ASX: NST)
A note out of UBS reveals that the broker has upgraded this gold miner all the way from a sell rating to a buy. UBS has also raised Northern Star Resources’ target price to $7.50 after a change of analyst covering the company. According to the note, the new analyst thinks that Northern Star has been conservative with its production plans and has revised its future production forecasts accordingly. While I do think that Northern Star is one of the best options in the gold mining industry, I’m quite bearish on the industry so plan to stay clear of it and its peers.
Instead of Northern Star I would be investing in one of these buy-rated star shares.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group 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.