With earnings season underway and the results coming in thick and fast, Australia’s leading brokers have been especially busy this month.
Unsurprisingly, this has led to the release of a large number of broker notes.
Three buy ratings that have caught my eye today are listed below. Here’s why brokers are bullish on them:
JB Hi-Fi Limited (ASX: JBH)
According to a note out of the Macquarie equities desk, it has retained its outperform rating and $29.00 price target on this retailer’s shares after its first half results release. The broker appears to be reasonably pleased with JB Hi-Fi’s performance in the first half and notes that its profits came in slightly ahead of its forecasts. It also appeared pleased to see management reaffirm its full year sales growth guidance. While it isn’t a share that I would buy, given the low multiples that it trades on, I think it could be worth considering.
REA Group Limited (ASX: REA)
Analysts at Citi have retained their buy rating and $105.00 price target on this property listings company’s shares following its first half results release last week. According to the note, the broker felt management’s guidance for the second half was conservative. It also expects a rapid uptick in revenue growth once listing headwinds subside. This isn’t expected to be too far away according to the broker, potentially making now an opportune time to invest. I agree with Citi on REA Group and think it would be a great option for a patient long-term investment.
South32 Ltd (ASX: S32)
A note out of UBS reveals that its analysts have retained their buy rating and $4.10 price target on this diversified mining company’s shares. According to the note, the broker believes that South32 could benefit from developments in Ghana which has seen the government audit large mining companies. One mining company that has been suspended pending its audit is Ghana Manganese Company. If this suspension drags on it could impact global manganese supply and push prices higher, much to the delight of South32 which generates a significant portion of its earnings through its manganese operations. I think UBS makes a great point and feel it could be worth taking a closer look at South32.
And here are three more shares which have been given buy ratings that I think are in the buy zone right now.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. 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.