Brokers have been kept on their toes this week as earnings season continues to gather pace.
This has led to the release of countless broker notes offering buy and sell recommendations.
Three buy recommendations that caught my eye are listed below:
Australia and New Zealand Banking Group (ASX: ANZ)
According to a note out of Goldman Sachs, it has retained its conviction buy rating but lowered its price target slightly on this banking giant’s shares to $32.63 following the release of its third-quarter pillar 3 update. Goldman appears pleased with the quality of ANZ Bank’s assets and noted the 9% decline in gross impaired assets and lower than expected bad debt charges during the last quarter. Although there have been pockets of stress within its Western Australia mortgage book, the broker appears confident that the bank is capable of growing earnings per share at a solid rate over the coming years. I would agree with Goldman on this one and think it is worth a look if you don’t already have exposure to the banks.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and massive $65.00 price target on this pizza chain operator’s shares after the release of its full-year results. Although Domino’s missed its guidance and its outlook was a touch softer than expected, it believes the bears are running out of ammunition now. Especially with the market underappreciating the growth opportunities the company has in Europe. I agree with Morgan Stanley on Domino’s and think it could be a great buy and hold option.
Whitehaven Coal Ltd (ASX: WHC)
Another note out of Morgan Stanley reveals that the broker has retained its overweight and $6.25 price target on this coal miner’s shares. Its analysts appear to have been reasonably pleased with Whitehaven Coal’s results yesterday. Although its cost guidance was a little higher than expected, its dividend and saleable coal production forecasts were in line with expectations. The broker believes its shares are good value at 8x estimated FY 2019 earnings and I would have to agree.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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.