Many of Australia's leading brokers have been busy adjusting their recommendations to account for new data and developments.
Three shares that have fared well and been given buy ratings are listed below. Here's why they are in favour with brokers:
Jumbo Interactive Ltd (ASX: JIN)
According to a note out of Morgans, its analysts have held firm with their add rating and lifted the price target on its shares to $10.70 following last week's market update. Morgans was pleasantly surprised with the update and has upgraded its forecasts meaningfully to reflect its strong growth and operating leverage. In addition to this, the broker believes that its Powered By Jumbo offering has a lot of promise and suspects that a special dividend could be on the horizon. Despite its strong gain last week, I still feel Jumbo Interactive's shares are good value given its positive growth prospects.
Tabcorp Holdings Limited (ASX: TAH)
A note out of Deutsche Bank reveals that it has retained its buy rating and $5.50 price target on Tabcorp's shares following Jumbo Interactive's market update. As Jumbo Interactive is Tabcorp's digital partner, the broker believes that its upgraded guidance ought to be considered a positive for Tabcorp. Deutsche has pencilled in revenue growth of 10% for Tabcorp's lotteries business in FY 2019. I'm not a huge fan of Tabcorp at this point, so would prefer to get exposure to lotteries through Jumbo Interactive.
Webjet Limited (ASX: WEB)
Analysts at UBS have retained their buy rating and lifted the price target on this online travel company's shares to $20.20. According to the note, the broker has lifted its price target to reflect the positive contribution of the Destinations of the World business that was recently acquired for $240 million. In addition to this, UBS believes that Webjet will achieve earnings growth above 17% in FY 2019. Given this level of growth, the broker sees a lot of value in its shares and I completely agree with this view.