With earnings season gathering pace, brokers across Australia have been kept on their toes this week.
Unsurprisingly, this has led to a good number of broker notes hitting the wires. Three buy ratings that caught my eye are listed below.
Here’s why brokers are bullish on them:
CSL Limited (ASX: CSL)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and $230.00 price target on this global biotech company’s shares ahead of its earnings release next week. The broker notes that flu dose distributions and vaccination rates in the U.S. are higher than the prior corresponding period, supporting the growth of its Seqirus business in the near term. Looking to the future, Macquarie believes the products in its pipeline will provide additional growth in the long term, adding support to its core business. I agree with Macquarie and believe CSL is a great option for investors.
HT&E Ltd (ASX: HT1)
A note out of Credit Suisse reveals that its analysts have upgraded this media, entertainment and technology company’s shares to an outperform rating, albeit with a reduced price target of $1.95. According to the note, the broker has reduced its earnings forecasts after reviewing its audience share in 2018, but still sees enough value in its shares at current levels to warrant an upgrade to outperform. While it isn’t a share that I’m a huge fan of, at a touch over 12x estimated FY 2019 earnings its shares do look cheap.
James Hardie Industries plc (ASX: JHX)
Analysts at Goldman Sachs have retained their buy rating and $22.50 price target on this building materials company’s shares following the release of its third quarter results. According to the note, the company’s earnings were slightly weaker than the broker expected, but it remains positive on its outlook due to cost savings opportunities that it believes will flow through to the bottom line. Again, James Hardie isn’t a share that I would ordinarily buy, but I agree that its shares look to be good value at current levels.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.