A large number of broker notes have hit the wires this week, leading to many popular shares being declared buys and sells.
Three shares that are in favour with brokers and have been given a buy rating are listed below. Here's why they are bullish on them:
Freedom Foods Group Ltd (ASX: FNP)
According to a note out of Deutsche Bank, its analysts have initiated coverage on this diversified food company with a buy rating and $6.00 price target. Deutsche made the move on the belief that Freedom Foods is well-positioned for growth thanks to strong demand for dairy products at home and abroad and its exposure to health foods. In addition to this, although its shares trade at a premium to the market average, the broker believes its growth profile justifies this. I agree with Deutsche and feel Freedom Foods could be a great long-term investment.
GrainCorp Ltd (ASX: GNC)
Analysts at UBS have retained their buy rating and $10.42 price target on GrainCorp's shares after it announced plans to spin-off its global malting business. This will result in two independent ASX-listed companies – MaltCo and New GrainCorp. According to the note, UBS believes the company's decision makes a lot of sense given the lack of synergies and expects it to unlock shareholder value. I agree with UBS on this one and would be interested in investing in MaltCo at the right price should the demerger go ahead.
Whitehaven Coal Ltd (ASX: WHC)
Another note out of Deutsche Bank reveals that its analysts have retained their buy rating and $5.20 price target on this coal miner's shares. According to the note, the broker believes that Whitehaven is a great option for income investors due to its generous dividend yield which is being supported by strong free cash flows. At present Whitehaven's shares offer investors a trailing unfranked 9.2% dividend. I think Deutsche makes some fair points and it could be worth a closer look.
