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:
Myer Holdings Ltd (ASX: MYR)
According to a note out of UBS, its analysts have upgraded this department store operator's shares to a buy rating from neutral and lifted the price target on them to 64 cents. The broker made the move after lifting its earnings estimates to reflect an uplift from its turnaround strategy. UBS also suggests that Myer is likely to benefit greatly from tax cuts. Whilst I think UBS makes a very good point and I've been impressed with its improving performance, I'm going to wait for Myer's next update before considering an investment.
Transurban Group (ASX: TCL)
A note out of Ord Minnett reveals that its analysts have resumed coverage on this toll road giant with a buy rating and $16.75 price target. The broker believes that Transurban's shares are attractively priced at the current level. This is because its analysts estimate that increasing traffic will support free cash flow growth of 8% per annum through to FY 2025. This should lead to solid distribution growth over the medium term. I agree with Ord Minnett and believe Transurban is a great option in this low interest rate environment.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at UBS have retained their buy rating and $19.00 price target on this wine company's shares. According to the note, the broker believes the company's decision to bring forward the 2019 Penfolds release is a positive and expects it to support its cash conversion. This is something which the broker had flagged as a concern previously. All in all, UBS expects Treasury Wine Estates to deliver on its guidance of 25% EBITS growth in FY 2019 and expects similarly strong growth next year. I think UBS is spot on and would also class its shares as a buy.
