Although the markets have been quieter this month after a hectic earnings season, the broker notes have continued to come in thick and fast.
Three shares that have fared well and been given buy ratings are listed below. Should you invest?
South32 Ltd (ASX: S32)
According to a note out of Credit Suisse, it has retained its outperform rating and lifted the price target on the diversified miner’s shares to $4.35. The broker has made the move on the back of recent movements in commodity prices. A decline in zinc forecasts has more than been offset by rises in coal forecasts. I would agree with Credit Suisse on South32. While it isn’t my favourite resources share, I think it is a good option for investors looking to gain exposure to the sector.
Vocus Group Ltd (ASX: VOC)
Analysts at Citi have retained their buy rating and lifted the price target on this telco company’s shares to $3.65. Citi made the move due to its increased confidence in Vocus’ long-term earnings recovery. While the broker isn’t expecting explosive earnings growth over the coming years, it appears to believe its shares are fairly priced for its current growth profile. Citi expects earnings per share of 16.7 cents this year, before growing to 17.6 cents per share in FY 2020. At which point the broker expects Vocus to resume paying a dividend. While I agree that Vocus is an attractive option, I’d like to wait and see how the sector performs over the next 12 months before considering an investment.
Woolworths Group Ltd (ASX: WOW)
Another note out of Citi reveals that its analysts have upgraded this retail conglomerate’s shares to a buy rating from neutral and retained its price target of $32.00. Citi has upgraded Woolies largely on valuation grounds following a reasonable pullback in its share price. The broker believes the recent Little Shop promotion by Coles will have dented Woolies’ sales momentum, but expects its supermarkets to bounce back quickly. Incidentally, Citi has retained its sell rating on Wesfarmers Ltd (ASX: WES) shares. While I’d prefer to buy in at an even lower, I do agree that the pullback makes Woolworths’ shares reasonably attractive.
Here is one buy-rated share that I think is a must buy this month.
Discover why this legendary Australian stock-picker just issued a “Double Down” buy alert to his exclusive group of insiders… and why he’s convinced this might be the single most attractive entry point for years to come.
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