With so many shares to choose from on the Australian share market, it can be hard to decide which ones to buy.
Luckily, brokers have done a lot of the hard work to make your life easier. Three shares that they have just rated as buys are listed below. Here's why they are bullish on them:
Coles Group Limited (ASX: COL)
According to a note out of Citi, its analysts have initiated coverage on Coles with a buy rating and $14.70 price target. The broker believes that the discount to Woolworths Group Ltd (ASX: WOW) that Coles' shares are trading at makes them an attractive option. Especially given its defensive earnings. Furthermore, Citi expects a competitive but rational grocery market in the future, believing that neither supermarket giant will launch a price war again. I'm warming to Coles and think it could be worth a closer look.
Costa Group Holdings Ltd (ASX: CGC)
A note out of Macquarie reveals that its equity analysts have upgraded this horticulture company's shares to an outperform rating from neutral with a slightly reduced price target of $7.60. According to the note, the broker was pleased with Costa Group's solid start to FY 2019 and its reiteration of low double-digit earnings growth in FY 2019. While it will need a strong performance in the second half to achieve this, the broker remains confident due to its strong track record and market leading position. Although I do have concerns over how its earnings will be skewed massively towards the second half, I agree that it is likely to deliver on its short and long-term guidance. This could make it worth considering.
Evolution Mining Ltd (ASX: EVN)
Analysts at Goldman Sachs have retained their buy rating and $3.40 price target on this gold miner's shares after it provided an update on the expansion of the processing plant at Cowal. That update revealed that Evolution has approved the expansion which will lift throughput to 8.7Mtpa from the current 7.5Mpta nameplate. According to the note, Goldman is pleased with this move and expects further increases to occur by FY 2021, underpinning its future growth. While I think that Goldman makes a great point, I'm not a buyer of gold miners right now. But if you're looking for exposure to the precious metal it could be worth a look.
