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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Deutsche Bank, its analysts have retained their buy rating and increased their price target on this infant formula and fresh milk company’s shares to NZ$17.00 (A$16.09) following its third quarter update. That update revealed that a2 Milk Company’s growth continued in the third quarter, with the company reporting a 42% increase in group revenue over the first nine months of FY 2019 to NZ$938 million. I agree with Deutsche on a2 Milk Company and think it could be a great long-term investment.
CSL Limited (ASX: CSL)
A note out of Citi reveals that its analysts have retained their buy rating and lifted the price target on this biotherapeutics company’s shares to $236.60. According to the note, the broker made the move partly after looking through the company’s research and development pipeline. Citi believes there are a number of products in its pipeline that could contribute materially to its earnings in the medium term. I think Citi is spot on with CSL and believe it is one of the best buy and hold options on the Australian share market.
Hansen Technologies Limited (ASX: HSN)
Analysts at Ord Minnett have upgraded this billing technology company’s shares to a buy rating with an increased price target of $3.95. According to the note, the broker made the move in response to its acquisition of Canada-based Sigma Systems for A$166.2 million this week. The broker believes the acquisition is a good one and expects it to be 20% accretive to earnings. Whilst I’ve been very disappointed with its performance over the last couple of years, this acquisition could be just what Hansen Technologies needs to get it on the right path again. This could make it worth taking a closer look.
These 3 stocks could be the next big movers in 2020
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Hansen Technologies. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Hansen Technologies. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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