Once again, brokers across Australia have been working hard on their financial models and adjusting their recommendations accordingly.
Three shares that have come out of this favourably are listed below. Here's why they have been given buy ratings this week:
Galaxy Resources Limited (ASX: GXY)
According to a note out of Credit Suisse, its analysts have upgraded this lithium miner's shares to an outperform rating with a $3.15 price target. Although the broker acknowledges that Galaxy's December quarter was below its expectations and that 2019 lithium prices have continued to slide, its analysts still see a lot of value in Galaxy's shares at the current level. While I do agree with Credit Suisse, I wouldn't be a buyer until lithium prices have bottomed.
ResMed Inc. (ASX: RMD)
Analysts at Morgans have retained their add rating but cut the price target on the sleep treatment-focused medical device company's shares to $16.31 following its second quarter update. According to the note, the broker believes that the selloff of ResMed's shares has been overdone and that they are very much in the buy zone now. Morgans continues to believe that the company is well-positioned for growth. I agree with the broker on ResMed and think the selloff has created a buying opportunity.
Seven Group Holdings Ltd (ASX: SVW)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $22.10 price target on this diversified investment company's shares following US giant Caterpillar's results release. Although the latter's results thoroughly underwhelmed overnight, Goldman remains positive on Seven's WesTrac business. It believes that we are in the early stages of a multi-year mining investment cycle, putting Seven in a great position to profit. While it is a little soon for me to invest, if Goldman is correct then I think Seven Group could end up being a great investment.
