Brokers up and down Australia have been busy adjusting their estimates and discounted cash flow models again this week.
This has led to a number of broker notes being released. Three buy ratings that caught my eye are summarised below. Here's why brokers are bullish on them:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Deutsche Bank, its analysts have retained their buy rating and $39.75 price target on this gaming technology company's shares following the release of the full year result of rival International Game Technology late last week. The broker believes that its result and guidance demonstrate that the North American market is stable and that Aristocrat Leisure is winning market share. I agree with Deutsche on Aristocrat Leisure and feel it would be a great investment option.
IPH Ltd (ASX: IPH)
A note out of the Macquarie equities desk reveals that its analysts have upgraded this intellectual property services company's shares to an outperform rating with an increased price target of $7.10. According to the note, the broker believes IPH is in a strong position in the fight to merge with Xenith IP Group Ltd (ASX: XIP). If this does go ahead, instead of with QANTM Intellectual Property Ltd (ASX: QIP), the broker sees significant accretion potential. I think Macquarie makes a good point on IPH and it could be worth a look.
Nufarm Limited (ASX: NUF)
Analysts at Goldman Sachs have upgraded this crop protection and seeds technology company's shares to a buy rating with a $6.90 price target. According to the note, the broker made the move after its shares lost almost a third of their value over the last 12 months. In addition to this, Goldman believes Nufarm is well positioned to benefit from an improving industry backdrop and shifting business mix. The broker expects measured growth from here and believes concerns over Australia and glyphosate are overdone. Whilst I'm not a big fan of Nufarm, I agree that its shares look good value at this level.
