With quarterly reports being released and annual general meetings being held, brokers have been busy responding to new data.
This has led to a large number of broker notes hitting the wires this week.
Three buy ratings that caught my eye are listed below. Here’s why brokers are bullish on these shares:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Goldman Sachs, it has retained its buy rating and $12.20 price target on this infant formula and dairy company’s shares following the release of its trading update this morning. The broker appears pleased that a2 Milk Company is currently performing to expectations and has seen its share of the Chinese infant formula market expand during the quarter. I agree with Goldman Sachs on this one and think it could be a great long-term buy and hold investment.
Aristocrat Leisure Limited (ASX: ALL)
A note out of Deutsche Bank reveals that its analysts have retained their buy rating and $41.45 price target on this gaming technology company’s shares. The broker has held firm with its rating after meeting with industry players. As a result of these meetings, the broker estimates that Aristocrat Leisure has continued to win market share from competitors. Deutsche expects this positive trend to continue for the next couple of years thanks to new releases. I agree with Deutsche and feel its shares offer a compelling risk/reward right now.
National Australia Bank Ltd (ASX: NAB)
Analysts at Citi have retained their buy rating and $32.25 price target on this banking giant’s shares following yesterday’s announcement of a $314 million hit to its profits in FY 2018. The broker expects further compensation provisions in FY 2019 and fears it could prevent the bank from achieving APRA’s CET1 ratio target of 10.5% by the January 2020 deadline. Citi suspects that a sizeable capital raising may be announced as early as its full year results to help it firm up its balance sheet and hit APRA’s unquestionably strong benchmark. Despite this, the broker still likes National Australia Bank due to its strong position in business banking and valuation. I would class its shares as a hold right now and see more value elsewhere in the industry.
And here is a fourth share that has been given a buy rating 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.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk and National Australia Bank 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.