It certainly has been a busy week with countless blue chips reporting their respective full-year results.
This has kept broker on their toes and led to the release of a large number of broker notes.
Three buy recommendations that have caught my eye today are summarised below:
Lifestyle Communities Limited (ASX: LIC)
According to a note out of Goldman Sachs, it has retained its conviction buy rating and lifted the price target on this independent living communities provider’s shares to $7.70 following the release of its full-year results. The broker believes that its shares are attractively priced at 18x underlying earnings, especially given its expectation for earnings growth of 17% in FY 2019. I would have to agree with Goldman on this one. Right now, I think it is a much better way to gain exposure to the ageing populations tailwind than aged care providers which are struggling to deliver meaningful growth.
Sonic Healthcare Limited (ASX: SHL)
Analysts at Deutsche Bank have retained their buy rating and $28.10 price target on the shares of this healthcare company after yesterday’s results release. According to the note, the broker was pleased with Sonic Healthcare’s result and the growth that was delivered across most markets. While its guidance for the year ahead was a touch weaker than expected, it isn’t enough for the broker to change its recommendation. Although I thought Sonic Healthcare’s result was solid, I don’t think its shares offer compelling value at these levels. In light of this, I would hold out for a decent pullback before buying.
Telstra Corporation Ltd (ASX: TLS)
A note out of Morgans reveals that its analysts have retained their add rating and increased the price target on the telco giant’s shares to $3.50 following the release of its full-year results yesterday. Although the broker acknowledges that the telco market is a difficult place to be right now, it notes that conditions have not deteriorated. In addition to this, it suspects that the market could re-rate Telstra’s shares once its EBITDA stabilises. While I did see a lot of positives in yesterday’s results, there wasn’t enough to make me overly bullish. I would class Telstra as a hold right now.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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.