With earnings season rapidly approaching, brokers have been busy adjusting their forecasts and recommendations accordingly ahead of results releases.
Three shares that have fared well from this and have been given buy ratings are listed below. Here’s why they have been tipped as buys:
Challenger Ltd (ASX: CGF)
According to a note out of Citi, its analysts have retained their buy rating and $13.60 price target on the shares of this annuities company. The broker has held firm with its recommendation despite revising its earnings forecasts lower for FY 2018 to account for losses on widening spreads. Citi remains bullish on Challenger’s long-term growth potential and appears to see it as a good buy and hold option. While I do agree that it could have a bright future ahead of it, I’m holding off an investment until it provides guidance for FY 2019 which shows a return to growth.
IMF Bentham Ltd (ASX: IMF)
A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and lifted the price target on the law firm’s shares slightly to $3.85. According to the note, Goldman appears pleased with IMF Bentham’s shift in its broader strategy towards creating a diversified portfolio in its new fund structure. Furthermore, Goldman has noted how the company has a strong pipeline and continues to be presented with potentially attractive case investment opportunities. While I’m not a fan of the company, it could be worth a closer look given how much upside Goldman is predicting.
Mayne Pharma Group Ltd (ASX: MYX)
Analysts at Credit Suisse have upgraded this pharmaceutical company’s shares to an outperform rating from neutral with an increased price target of $1.00. The broker has made the move after assessing the market opportunity for two news products Mayne Pharma plans to release this year. Furthermore, the broker has suggested that investors view any earnings season share price weakness as a buying opportunity. The combination of these products and the easing of generic drug price deflation could make Mayne Pharma a good investment in my opinion. Though, it would be a reasonably high risk one.
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger 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.
- 3 exciting ASX tech shares to buy and hold for a decade – July 14, 2020 5:44pm
- Why I would buy Nearmap and this mid cap ASX share right now – July 14, 2020 4:35pm
- 2 ASX growth shares to buy in the healthcare sector – July 14, 2020 3:32pm