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:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and $27.25 price target on this gaming technology company's shares ahead of its half year results later this month. Macquarie believes Aristocrat Leisure is well-placed for growth with its North America and digital businesses. And although the broker suspects that the company's increased spending on user acquisition will weigh on its margins, it expects margins to start recovering again in the second half. I agree with Macquarie and think Aristocrat Leisure would be a great investment.
Qantas Airways Limited (ASX: QAN)
A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $6.93 price target on this airline operator's shares following the release of a "solid" third quarter update. According to the note, the broker believes this update confirms that Qantas continues to maintain a very strong degree of control over its revenue base which allows it to offset the impact of significantly higher fuel costs. It expects a strong full year result in August and potential capital management initiatives. I think Goldman is spot on and believe Qantas is a great option for investors.
QBE Insurance Group Ltd (ASX: QBE)
Analysts at Credit Suisse have retained their outperform rating and $13.00 price target on this insurance giant's shares following the release of an update at its annual general meeting. The broker appears pleased to see that the company is on track to achieve its FY 2019 targets and that its natural perils claims are in line with expectations. Whilst I have been impressed with its return to form, I don't think its shares offer value for money at this level. As such, I would class them as a hold.
