The Christmas break may be bearing down on us, but brokers have been as busy as ever adjusting their discounted cash flow models and recommendations accordingly.
Three shares that are in favour this week are listed below. Here's why brokers have tipped them as ASX shares to buy:
GWA Group Ltd (ASX: GWA)
According to a note out of Citi, its analysts have upgraded the shares of this supplier of building fixtures and fittings to a buy rating from neutral and increased the price target on them to $3.69. The broker believes the company's plan to acquire New Zealand-based Methven business is a good move and expects it to complement its bathrooms and kitchens business. In addition to this, the broker likes that the business will increase its exposure to the Australian renovations and replacements market. I think Citi makes a good point on GWA and feel it could be worth a closer look.
MNF Group Ltd (ASX: MNF)
Analysts at Morgan Stanley have retained their overweight rating but reduced the price target on MNF Group's shares to $6.30 following the completion of its acquisition of the Wholesale and Enablement business of Inabox Group (ASX: IAB). According to the note, the broker appears pleased with the acquisition and expects it to provide scale and synergies. The price target reduction has been made to account for the weaker than expected guidance at its annual general meeting, but is still meaningfully higher than its current share price.
Qantas Airways Limited (ASX: QAN)
A note out of Goldman Sachs reveals that it has retained its buy rating and $6.97 price target on this airline operator's shares following the release of airfare data from the Bureau of Infrastructure, Transport and Regional Economics. The data has shown strong airfare rises across most routes and class types in December. In fact, December 2018 has posted the highest 'cheapest available' average airfares since January 2010. With oil prices down and airfares up, I think Qantas could be a good option for investors.
