Brokers have been very busy this week adjusting their estimates and recommendations ahead of earnings season next month.
Three shares that have come out of this favourably are listed below. Here's why they have been given the much-coveted buy rating:
HUB24 Ltd (ASX: HUB)
According to a note out of Goldman Sachs, its analysts have retained their buy rating and $15.40 price target on this investment platform provider's shares following its quarterly update on Tuesday. The broker notes that HUB24's net inflows onto its platform were above its expectations and believes this supports its positive view on the outlook of the company. Yesterday HUB24 advised of net inflows of $1.5 billion during the December quarter, which is the highest for any quarter to date and up 167.4% on the prior corresponding period. I think HUB24 could be a great long-term investment, just as long as increasing competition doesn't lead to margin pressure.
IDP Education Ltd (ASX: IEL)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on IDP Education's shares to $11.50. According to the note, the broker has analysed student visa data and found that strong growth trends have continued. This could put the provider of international student placement services and English language testing services in a solid position to outperform this year. I agree with Macquarie and believe it could be a great option for investors.
Syrah Resources Ltd (ASX: SYR)
Analysts at Credit Suisse have retained their outperform rating and $5.50 price target on this graphite producer's shares following its recent production update. According to the note, the broker was pleased with the update and believes it should ease investor concerns over the performance of its Balama operation. So much so, Credit Suisse feels there's a chance that its shares could re-rate higher if the company can maintain its strong production performance. While I do agree with Credit Suisse that this could be the case, I'm holding out for its half year results to see what price the company has commanded for its graphite.
