The end of earnings season may be within sight, but the results continue to come in thick and fast.
This has kept brokers busy this week and led to the release of countless broker notes.
Three buy ratings that caught my eye today are listed below:
ARB Corporation Limited (ASX: ARB)
Analysts at Macquarie have retained their outperform rating but cut the price target on this four-wheel drive vehicle accessories company’s shares slightly to $23.50 following the release of its full year results on Wednesday. Although those results came in a little below the broker’s estimates, it still felt ARB delivered a strong result nonetheless. Macquarie continues to believe that ARB is a quality business and has forecast the company to deliver robust growth in the medium term. I agree with Macquarie on ARB and see it as a great buy and hold investment option.
IDP Education Ltd (ASX: IEL)
According to a note out of Morgan Stanley, it has retained its overweight rating and lifted the price target on IDP Education’s shares to $11.00 after the provider of international student placement and English language testing services released its full year results yesterday. Morgan Stanley liked what it saw and believes the market doesn’t appreciate the company’s strong growth prospects. While I do agree with the broker on IDP Education, due to its shares changing hands at a significant premium to the market average, I intend to hold off investing until there’s clearer guidance on the year ahead.
Qantas Airways Limited (ASX: QAN)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $7.24 price target on the airline’s shares after its full year results release on Thursday. The broker appeared to be particularly pleased with the Qantas Domestic result and management’s upbeat commentary regarding FY 2019 and its ability to recover the $690 million increase in fuel costs. While fuel costs are a headwind, Goldman believes the quality and diversity of its portfolio not only provides greater earnings and cash flow stability, but more fleet and scheduling options to underpin profitable growth going forward. I agree with Goldman on Qantas and think investors ought to take a closer look at the airline.
Looking for more ideas? Here are three more buy rated shares to consider.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB 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.