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:
BHP Group Ltd (ASX: BHP)
Analysts at Macquarie have retained their outperform rating and $41.00 price target on this mining giant's shares after the release of its third quarter update. According to the note, the broker was pleased with BHP's petroleum production during the quarter and its guidance for the full year. In addition to this, Macquarie expects BHP to benefit from elevated iron ore prices caused by supply issues. I think the broker is spot on with BHP and feel the miner is the best option in the resources sector right now.
Carsales.Com Ltd (ASX: CAR)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and $15.00 price target on this auto listings company's shares. The broker believes concerns over recent declines in Australian new car sales are unnecessary as they account for less than a fifth of listings on its website. Furthermore, they are generally less profitable for the company than used car listings. I think Credit Suisse makes a great point on Carsales and it could be worth a closer look.
Coles Group Ltd (ASX: COL)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $13.30 price target on this supermarket giant's shares after looking closer at its deal with Ocado. According to the note, Goldman estimates that once Ocado's services are in place, Coles' online profitability per order will be 5.4%. Overall, the broker believes Coles is poised for greater profitability from its online strategy and supply chain investments and is undervalued in relation to its closest peers. I agree with Goldman and would class Coles as a buy.
