With earnings season just around the corner, brokers across the country have been adjusting forecasts and recommendations accordingly.
This has led to a number of buy and sell recommendations being made.
Three shares that have been given buy rating this week are listed below. Here's why they have been tipped as shares to buy:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Ord Minnett, its analysts have upgraded this gaming technology company's shares to a buy rating from accumulate. Although the broker expects the Australian gaming market to remain weak, the broker believes Aristocrat Leisure is well-positioned for growth due to its expansion into the social and mobile gaming market. I agree with Ord Minnett on Aristocrat Leisure and believe it is one of the best value growth shares on the Australian share market right now.
BHP Group Ltd (ASX: BHP)
A note out of Citi reveals that its analysts have retained their buy rating and $38.00 price target on this mining giant's shares following its December quarter update. According to the note, the broker felt production in the quarter was a little weaker than expected and has adjusted its estimates for FY 2019 to reflect this. However, the broker remains positive on BHP's outlook and has held firm with its buy rating. Whilst the December quarter was a touch weaker than expected, I was pleased to see management reiterate its production and unit cost guidance for the full year. I agree that it is in the buy zone right now.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Macquarie have retained their outperform rating on this pizza chain operator's shares, albeit with a reduced price target of $54.00. According to the note, the broker believes that concerns over the profitability of the company's domestic franchises are unnecessary. In addition to this, Macquarie believes the market ought to focus on the long-term growth opportunity the company has in the European market. While I do have concerns over stories in the media about dissatisfied franchisees, at the currently share price I do think it is an attractive long-term investment if these concerns prove to be unfounded.
