It has been another busy week of broker moves after earnings season kicked off.
Three shares that have found favour with brokers and been given buy ratings are listed below. Here's why they are tipped to rise:
Evolution Mining Ltd (ASX: EVN)
According to a note out of Morgans, it has upgraded this gold miner's shares to an add rating with an improved price target of $3.20. The broker made the move after Evolution achieved gold production of 801,187 ounces in FY 2018. This was at the high-end of its 750,000 to 805,000 guidance range. Morgans also appears impressed with its record low all-in sustaining costs of A$797 per ounce and its guidance for FY 2019. If I were bullish on the precious metal I would be interested in Evolution. But with rates rising quickly in the United States, I expect the gold price to come under pressure.
Lendlease Group (ASX: LLC)
A note out of Morgan Stanley reveals that it has retained its overweight rating and lifted the price target on Lendlease's shares to $23.05. According to the note, the broker believes the international property and infrastructure group is well-positioned to deliver low-risk growth and improving returns thanks to a change in project origination, development, and funds under management growth. While it isn't a share that I'm a huge fan of, I think Morgan Stanley makes some fair points. It could be worth a closer look at these levels.
Rio Tinto Limited (ASX: RIO)
Analysts at Citi have retailed their buy rating and $87.00 price target on this mining giant's shares despite its first-half results coming in below expectations. While the broker has concerns over its rising costs and the impact of trade wars on Chinese growth, it was pleased with its cash generation and believes more funds could be returned to shareholders in the second-half. I would agree with Citi and think Rio Tinto could be a good option for investors looking for exposure to the resources sector. And as long as global growth remains positive, I expect the miner to generate strong cash flows and be a top dividend payer.