Brokers across Australia have been busy once again adjusting their discounted cash flow models and recommendations for many of the country’s most popular shares.
Three buy recommendations that caught my eye are summarised below. Should you be buying these shares today?
Boral Limited (ASX: BLD)
According to a note out of Morgan Stanley, it has retained its overweight rating and $8.00 price target on this building and construction materials company’s shares. The broker has held firm with its rating despite news that the only potential buyer has backed out of a deal to buy the Navajo Generating Station coal plant in Arizona. Navajo is now expected to close in December 2019, but the broker remains positive on Boral fly ash business due to management’s growth strategies. I would agree with Morgan Stanley on Boral and think it is a decent option for investors.
Premier Investments Limited (ASX: PMV)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on the retail group’s shares to $20.90. According to the note, the broker feels that the company’s global expansion plans demonstrate that it has confidence in its long-term outlook. In addition to this, Macquarie believes that recent investments are temporarily weighing on its margins and growth. Improvements are expected in time. In light of this, it doesn’t believe its current valuation is demanding. While I do agree that the long-term outlook for the Smiggle and Peter Alexander brands is very positive, I intend to wait for either the performance of its other brands to improve or its shares to trade on a more attractive multiple.
ResMed Inc. (ASX: RMD)
A note out of Goldman Sachs reveals that the broker has retained its buy rating and $16.70 price target on ResMed’s shares following its investor day in San Diego last week. The broker estimates that the CPAP market is growing around the top of its historical mid-high single digit range and it believes ResMed is currently achieving stronger growth due to its superior portfolio and effective commercial strategy. I agree with Goldman on ResMed and think it would be a great buy and hold investment option.
And don't miss this buy-rated share that has been tipped for big things in FY 2019.
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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 Premier Investments Limited. The Motley Fool Australia has recommended ResMed Inc. 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.