With earnings season now within sight, brokers across Australia have been busy adjusting their estimates and recommendations ahead of the big event.
Three shares that have been tipped as buys this week are listed below. Here's why brokers are bullish on them:
Bingo Industries Ltd (ASX: BIN)
According to a note out of Morgans, its analysts have initiated coverage on this waste management company's shares with an add rating and $2.37 price target. Its analysts see value in the company's shares after a sharp pullback over the last few months. This has been caused by concerns that the ACCC will block its acquisition of Dial-A-Dump Industries and weakening residential construction activity. I'm optimistic that Bingo will manage to get the go ahead for its acquisition after proposing to divest certain assets, making it well worth considering as an investment today.
HUB24 Ltd (ASX: HUB)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted the price target on this investment platform provider's shares to $15.90. According to the note, the broker was pleased with HUB24's performance in the second quarter and has upgraded its forecasts to account for stronger than expected net inflows. Looking ahead, it expects emerging platforms like HUB24 to capture an outsized proportion of market inflows as a result of increased scrutiny on the vertically integrated incumbents. As I've said before, I think HUB24 could be a great long-term investment, just as long as increasing competition doesn't lead to margin pressure.
Challenger Ltd (ASX: CGF)
Analysts at Macquarie have retained their outperform rating but slashed the price target on this embattled annuities company's shares to $10.60 following its profit guidance downgrade. According to the note, the broker was disappointed with its guidance cut, but sees value in its shares after their selloff this week. Macquarie notes that Challenger's shares are trading around 13% lower than its five-year average price to earnings ratio. While I agree that its shares look to be good value now, I'd rather wait and see if its performance improves before considering an investment.
