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:
Qantas Airways Limited (ASX: QAN)
According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating and $6.74 price target on this airline operator's shares following the announcement of changes to its Frequent Flyers program. Goldman believes Qantas is trying to increase engagement through improving the rate of redemptions. It also suspects that it may be an attempt to arrest a sustained decline in business class airfares. The broker thinks that reducing the attractiveness of premium upgrades could improve margins. I agree with Goldman Sachs and think Qantas is a good option for investors.
Rio Tinto Limited (ASX: RIO)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $109.00 price target on this mining giant's shares despite its iron ore shipment guidance downgrade. According to the note, the broker had expected the miner to fall short of its guidance this year, so this didn't come as a surprise. Furthermore, the broker believes that the shipment reduction will be more than offset by increasing iron ore prices. I think Macquarie is spot on and continue to see value in Rio Tinto's shares.
SeaLink Travel Group Ltd (ASX: SLK)
Analysts at Ord Minnett have retained their buy rating but trimmed the price target on this travel company's shares to $4.62 following its disappointing trading update. According to the note, the broker still sees a lot of value in the company's shares at the current level and believes SeaLink could be an attractive acquisition target for a bigger player. Whilst I'm not a buyer of its shares at this point and would prefer to wait for trading conditions to improve, I think Ord Minnett makes some good points.
