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:
Michael Hill International Ltd (ASX: MHJ)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating but trimmed the price target on this jewellery retailer’s shares following its trading update. The broker appears pleased to have seen that trading has continued to improve since its disastrous first quarter. In addition to this, Macquarie expects management to deliver on its business transformation strategy in FY 2020. Whilst it wouldn’t be my first pick in the retail sector, its shares are attractively priced and provide a generous dividend yield.
Santos Ltd (ASX: STO)
A note out of Ord Minnett reveals that its analysts have retained their buy rating and lifted the price target on this energy producer’s shares to $7.60. According to the note, the broker made the move after factoring in recent favourable oil price movements. Ord Minnett continues to forecast an oil price of US$60 a barrel beyond 2022. I think Ord Minnet has made a good point and if you’re bullish on oil prices Santos could be a good option in the resources sector.
Whitehaven Coal Ltd (ASX: WHC)
Analysts at Morgan Stanley have retained their buy rating and $5.00 price target on this coal producer’s shares following its quarterly update. According to the note, the broker was pleased with its strong quarterly performance and sees a lot of value in its shares at the current level. Based on the broker’s forecasts, its shares are changing hands at 12x estimated FY 2020 earnings and offer a 4.3% dividend yield. I think the broker has made a good call here and Whitehaven Coal could be worth considering.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.