Brokers up and down Australia have been busy adjusting their discounted cash flow models and estimates 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:
Nufarm Limited (ASX: NUF)
According to a note out of Citi, its analysts have retained their buy rating but trimmed the price target on the crop protection company's shares to $7.20. Citi's analysts have reduced their price target to reflect expectations for a weaker second half due to the impact of dry weather on the winter crop season. However, its analysts remain positive on the company due to its compelling omega-3 opportunity. Whilst I'm not a big fan of Nufarm, I do see a lot of value in its shares at the current level.
Qantas Airways Limited (ASX: QAN)
A note out of the Macquarie equities desk reveals that its analysts have resumed coverage on this airline operator with an outperform rating and $6.25 price target. According to the note, the broker believes that Qantas' capacity management has been very effective and is supporting higher profits. So with its shares trading on significantly lower multiples than its peers, it believes now is an opportune time to invest in the company. I agree with Macquarie on Qantas and feel it would be a good investment option.
Syrah Resources Ltd (ASX: SYR)
Analysts at Credit Suisse have retained their outperform rating but cut the price target on the graphite miner's shares to $3.50 following its recent update. According to the note, Credit Suisse made the cut to its price target after the miner downgraded its price guidance last week. Syrah expects a weighted average graphite price of between US$460 and US$470 per tonne during the current quarter, compared to its guidance range of US$500 to US$600 per tonne just given over six weeks ago. Whilst at this level its shares look reasonably priced, I wouldn't invest until there has been a big improvement in graphite prices.
