It certainly has been a busy week filled with countless quarterly updates, annual general meetings, and trading updates.
Three shares that have found favour with brokers this week and been given buy ratings are listed below. Here's why they are bullish on them:
Flight Centre Travel Group Ltd (ASX: FLT)
According to a note out of Morgan Stanley, it has upgraded this travel agent's shares to an overweight rating with a slightly reduced price target of $59.00. The broker appears to believe that the selloff of its shares has been overdone and feels they are trading at an attractive level now. As well as this, Morgan Stanley has noted that management is reviewing its balance sheet in order to find the most appropriate use of its excess cash. It suspects that this could lead to capital management initiatives. I think Flight Centre is a quality company, but I'm holding fire until its half year results release to see if the recovery of its Australian leisure business has taken place.
Megaport Ltd (ASX: MP1)
Analysts at UBS have retained their buy rating but cut the price target on this tech company's shares slightly to $4.80 following the release of its first quarter update. According to the note, the broker was impressed with Megaport's performance in the first quarter. Although its investment in a sales force has potentially pushed back becoming break-even for a couple of years, UBS feels that the strategy is a good one and should lead to a larger market share in the long term. I agree with UBS on Megaport and think it is one of the better small cap tech shares on the local market.
OceanaGold Corp (ASX: OGC)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $5.50 price target on this gold miner's shares. The broker has responded positively to news of significant intercepts at its Macraes operation in New Zealand. These strong drilling results are expected to lead to its mine life being extended beyond 2020. While this is great news, I'm not a fan of the gold miners right now as I expect the precious metal to fall in value as bond yields widen in the United States.
