Many of Australia's top brokers have been busy adjusting their discounted cash flow models and recommendations accordingly this week.
This has led to a number of broker notes hitting the wires. Some have been positive, some not so.
Three shares that were given buy ratings this week are listed below:
Newcrest Mining Limited (ASX: NCM)
According to a note out of Citi, its analysts have retained their buy rating and $29.00 price target on this gold miner's shares after its announced plans to acquire a 70% stake in the Canada-based Red Chris project from Imperial Metals Corporation. Citi appears pleased with management's plan to build an underground cave similar to its Cadia East operation. However, no change has been made to its price target at this stage whilst costs and timings are unknown. If you're confident that the gold price is going to hold firm or go higher then I think Newcrest could be a good option.
Origin Energy Ltd (ASX: ORG)
A note out of UBS reveals that its analysts have retained their buy rating but reduced the price target on this energy company's shares to $8.75. According to the note, the broker has reduced its price target to reflect revisions to its oil price outlook and the impact that this will have on its cash distributions. However, UBS remains positive on the company due partly to its belief that it is well-positioned to increase its renewable generation capacity. Furthermore, recent share price weakness means its shares are trading 18% lower than the broker's price target. Whilst I think that UBS makes some fair points, I'm staying clear of the energy retailers until after the Federal election. I suspect high energy prices could be a hot topic on the campaign trail.
Reliance Worldwide Corporation Ltd (ASX: RWC)
Analysts at Goldman Sachs have retained their buy rating and $5.50 price target on this plumbing parts company's shares after looking into the building materials industry. According to the note, the broker is positive on building materials/products companies with U.S. exposure and cautious on those with exposure to just the ANZ market. This is because it believes the U.S. market remains below mid-cycle and expects it to continue recovering over the medium term. I agree with Goldman Sachs on Reliance Worldwide and feel it would be a good investment at current levels.
