Brokers across Australia have been as busy as ever this week responding to new data and share price movements.
This has led to several shares being given buy ratings this week. Three which caught my eye are listed below, here's why brokers are bullish on them:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of UBS, it has retained its buy rating and $36.20 price target on this gaming technology company's shares. The broker appears to be very bullish on the company's prospects and expects it to grow earnings by 35% this year and 27% next year. This is largely down to the success of its digital business. Following recent acquisitions and the significant jump in daily active users, the broker estimates that 75% of the company's revenue will be recurring. I completely agree with UBS on this one and believe it is the best growth share on the local market right now.
Bank of Queensland Limited (ASX: BOQ)
A note out of Citi reveals that its analysts have upgraded the regional bank's shares to a buy rating from neutral with an increased price target on $11.50. According to the note, the broker believes it is attractively priced after underperforming this year. It also sees an opportunity for the regional banks to consolidate their operations and believes shareholders would benefit from such a move. While it wouldn't be my first pick in the banking sector, I think Citi is spot on with its assessment.
Nearmap Ltd (ASX: NEA)
Analysts at Morgan Stanley have retained their overweight rating and lifted the price target on Nearmap's shares to $1.80 following the release of its preliminary full-year results yesterday. The broker appears pleased with its strong sales growth and lower than expected cash burn over the last 12 months. It expects the geospatial map technology company to continue this strong top line growth through to at least FY 2020. I thought yesterday's result was a strong one and would suggest investors take a closer look at the company before its shares take off.
