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:
Domino's Pizza Enterprises Ltd (ASX: DMP)
According to a note out of Morgan Stanley, its analysts have retained their outperform rating and $50.00 price target on this pizza chain operator's shares. The broker has held firm with its recommendation despite acknowledging that there is an increased risk of the company falling short of its full year earnings guidance after U.S. based Domino's Pizza Inc's first quarter results revealed continued softness in the European market. Despite this, the broker continues to rate its shares as a buy on valuation grounds. I agree with Morgan Stanley on Domino's and feel it could be a good long-term investment for patient investors.
National Australia Bank Ltd (ASX: NAB)
A note out of Goldman Sachs reveals that its analysts have held firm with their buy rating but trimmed the price target on this banking giant's shares to $30.55 after it revealed that its earnings would be impacted by $525 million of customer remediation costs. According to the note, Goldman expects this to result in a cut to its dividend but remains positive on the bank due to the underlying momentum in the business. The broker believes this will lead to underlying EPS growth that outperforms its peers. I think Goldman is spot on and would also be a buyer of NAB's shares.
South32 Ltd (ASX: S32)
Analysts at Credit Suisse have retained their outperform rating and $4.00 price target on this mining giant's shares. According to the note, the broker felt that South32's latest quarterly update was a touch mixed, but it remains positive on the company's prospects in the near term and sees numerous positive catalysts on the horizon. Whilst it wouldn't be my first choice in the resources sector, I would agree that it is a buy.
