With earnings season continuing to gather pace, brokers across Australia have been kept very busy this week. This has led to a large number of broker notes hitting the wires.
Three that caught my eye are summarised below. Here's why these shares have been given buy ratings:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Ord Minnett, its analysts have retained their buy rating but reduced the price target on them slightly to $31.25 following its annual general meeting. The broker appeared pleased with its update which revealed that the company is tracking in line with its plans for continued growth in FY 2019. All in all, the broker believes that the risk/reward on offer with its shares at the current level is attractive. I agree with this view and believe it would be a great buy and hold option.
Nearmap Ltd (ASX: NEA)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on this aerial imagery company's shares to $3.00 following its strong first half result. According to the note, the broker believes that the strong annualised contract value (ACV) and sales momentum in the first half will carry through to the second half and FY 2020 due to the seasonal skew in Nearmap's sales. I agree with Morgan Stanley on Nearmap and feel it could be a good option for growth investors.
Qantas Airways Limited (ASX: QAN)
Analysts at Goldman Sachs have retained their conviction buy rating but cut the price target on this airline's shares slightly to $7.24 following its softer than expected half year result. According to the note, Goldman felt that Qantas' first half result was mixed but was pleased with its fuel cost guidance of $3.9 billion and news that it has fully hedged its FY 2020 exposure at A$4.18 billion. Goldman believes it is well-positioned to benefit from its fuel hedging program due to its strong deployment of fuel cost recovery mechanisms and a hedging platform that has downside participation to falling oil prices. I think Goldman makes a great point on Qantas and feel it is well worth considering at current levels.
