It has been another busy week of broker note releases with countless buy and sell recommendations being made.
Three buy ratings that caught my eye are listed below. Here's why these shares are tipped as buys:
Accent Group Ltd (ASX: AX1)
Analysts at Citi have retained their buy rating and lifted the price target on this footwear retailer's shares to $1.75 after it delivered a solid full year result on Tuesday. According to the note, the broker thinks Accent is one of the best investment opportunities in the retail space and sees a lot of upside for its shares in the future. This is likely to be driven by its conservative guidance, omnichannel growth opportunities, and its international rollout plans. I agree with Citi on Accent Group and feel that yesterday's share price decline has created a buying opportunity for investors.
Adairs Ltd (ASX: ADH)
According to a note out of Goldman Sachs, its analysts have upgraded the home furnishings retailer's shares to a buy rating and lifted the price target on them to $3.10. Goldman was pleased to see Adairs deliver a solid result in line with expectations on Monday when it posted a 45.4% increase in profits to $30.6 million. The company's guidance was also in line with what the broker expected, giving its analysts the confidence to believe that the market may soon re-rate its shares given the strong momentum in its core business and a healthy balance sheet. I would agree with Goldman Sachs on Adairs and think it could be another retail turnaround story for investors to seize upon.
Appen Ltd (ASX: APX)
Another note out of Citi reveals that its analysts have retained their buy rating and lifted the price target on Appen's shares to $17.13 following the release of its half year results. Yesterday Appen posted a 119% increase in first-half underlying net profit after tax to $17.8 million thanks largely to the impressive performance of its Content Relevance segment. It is this segment which Citi appears most bullish on and expects it to benefit from new client wins and cost-out opportunities. While I would prefer to buy in at a lower price, I still feel Appen could prove to be an excellent buy and hold investment even at these levels.
