It has been a busy week with seemingly countless broker notes hitting the wires.
Today has been no exception and a number of shares have been rated as buys by brokers.
Three that caught my eye are listed below. Here's why they have been given the much-coveted buy rating:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of the Macquarie equities desk, it has held firm with its outperform rating and $12.40 price target following the release of the infant formula and dairy company's guidance yesterday. The broker appears to believe that a2 Milk Company will be a good long-term investment due to the way its business is disrupting a growing category. I agree with Macquarie on this one and think investors ought to consider seizing on this recent share price weakness to make an investment with a long-term view.
Noni B Limited (ASX: NBL)
Analysts at Morgans have retained their add rating and increased the price target on this fashion retailer's shares to $3.83 following the release of its trading update yesterday. The broker was pleased with its update and is confident that Noni B will have a strong FY 2019 thanks to its recent acquisitions and track record of turning around struggling retail brands. Morgans expects earnings to double by FY 2020. I've been a big fan of Noni B for some time and that remains the case today. I agree with Morgans that it would be a great investment.
Rio Tinto Limited (ASX: RIO)
Another note out of the Macquarie equities desk reveals that it has maintained its outperform rating and $94.00 price target on this mining giant's shares after it agreed to sell its interest in the Grasberg mine in Indonesia for US$3.5 billion. The broker expects its divestments to total a sizeable US$8.5 billion in 2018, giving the company the ability to boost its ongoing capital management programs. While I do have slight concerns over a potential global trade war, I'm optimistic that a crisis will be averted and that Rio Tinto will prove to be a good investment. Especially with these funds likely to find their way back to shareholders in the form of share buy backs or dividends.
