The last few trading days have been especially busy and filled to the brim with countless half year results, updates, and corporate developments.
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:
BHP Group Ltd (ASX: BHP)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and $41.00 price target on BHP's shares. Macquarie's analysts expect BHP to deliver a much stronger second half with a significant lift in production. This is expected to reverse the US$460 million negative movement in productivity during the first half. Furthermore, with the company's net debt now within its target range, the broker expects all its free cash flow to find its way back to shareholders in the form of share buybacks and dividends. Although its shares have rallied strongly over the last 12 months, I agree with Macquarie and believe they would still be a great option for investors.
Kogan.com Ltd (ASX: KGN)
A note out of UBS reveals that its analysts have retained their buy rating but cut the price target on this ecommerce company's shares to $5.00 following its half year results release. Although Kogan's loss during the first half was not as bad as UBS had feared, it was disappointed with the performance of its verticals. However, with its shares trading at an attractive level given its strong long term growth prospects, UBS has held firm with its buy rating. While I agree that Kogan could be a good long term investment, I plan to wait and see how it performs in the second half before making a move.
Telstra Corporation Ltd (ASX: TLS)
Analysts at Goldman Sachs have retained their conviction buy rating and $3.70 price target on this telco giant's shares after hosting an investor briefing with Telstra CEO Andrew Penn. According to the note, the broker appeared to be pleased with what it was told, especially with the company's confidence on being the leader in 5G. Goldman has previous stated its belief that Telstra is well positioned to achieve the top end of its underlying FY 2019 EBITDA guidance following its solid first half and sees 5G as a key driver of growth in the future.
