Many of Australia's leading brokers have been as busy as ever crunching numbers and responding to recent share price movements.
This has led to a number of broker notes coming in today with buy and sell recommendations.
Three buy recommendations that caught my eye are listed below. Here's why brokers think they are in the buy zone:
Pilbara Minerals Ltd (ASX: PLS)
According to a note out of Credit Suisse, it has retained its outperform rating and $1.15 price target on this lithium miner's shares following confirmation of its first shipment of concentrate. The broker believes the shipment and the high grade of the produce has significantly de-risked its shares. Pilbara Minerals remains its top pick in the industry due to its asset quality, strategic partnerships, and attractive valuation. I like Pilbara Minerals and think it is worth a look. However, it is a high risk investment option and largely unsuitable for the average investor.
REA Group Limited (ASX: REA)
Analysts at Goldman Sachs have retained their buy rating and $98.20 price target on this real estate listings company's shares following the weak update from rival Domain Holdings Australia Ltd (ASX: DHG) last week. Although the broker expects the digital real estate market to remain challenging in FY 2019, it believes REA Group is in a materially stronger position to grow its earnings. This is due to its stronger pricing power, depth penetration, international exposure, and the contribution of new products. I agree with Goldman on REA Group and think it could be a great long-term option following its recent pullback.
Wesfarmers Ltd (ASX: WES)
Another note out of Goldman Sachs reveals that it has held firm with its buy rating $52.20 price target on this conglomerate's shares following the release of its sales update for the Coles business. The broker appears pleased with the performance of its supermarket business. It achieved sales growth of 5.8% during the quarter compared to ABS sales growth estimates of 3.8% for the two months to August. Goldman believes this is a sign that Coles has won share from rivals during the first quarter of FY 2019. While I thought it was a strong quarter, I'd prefer to buy in at a much more attractive price.
