With earnings season kicking off yesterday, brokers across Australia have been busy 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:
Ardent Leisure Group (ASX: AAD)
According to a note out of Citi, it has retained its buy rating and lifted the price target on this entertainment company's shares to $2.40 following the release of its preliminary results. Although the broker notes the slower growth of its Main Event business at the end of the year, it expects improving trading conditions in the U.S. casual dining industry to be a tailwind in FY 2019. In addition to this, Citi suspects that its struggling Theme Parks business has found a base now and expects earnings to improve. While it is a high risk investment, I think it would be a good option for investors willing to make a patient buy and hold investment.
Credit Corp Group Limited (ASX: CCP)
A note out of Morgans reveals that its analysts have retained their add rating and increased the price target on this debt receivables company's shares to $21.97 after it delivered an FY 2018 result in line with expectations yesterday. Although its guidance was a little soft, this is due to investments in the United States. Which the broker believes will result in strong growth in the medium-term. While it wouldn't be my first preference in the industry, it could be worth a look after yesterday's positive result.
Orocobre Limited (ASX: ORE)
Analysts at Credit Suisse have retained their outperform rating and $5.70 price target on this lithium miner's shares after its quarterly update. The broker appears pleased to see that the average price realised in the quarter was the highest it has ever been. Orocobre reported a price of US$13,653 per tonne on a free on-board basis during the quarter, leading to record quarterly sales of US$44.4 million. I thought it was an impressive quarter by Orocobre and went some way to allaying concerns over falling prices.
