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:
Appen Ltd (ASX: APX)
According to a note out of Citi, it has retained its buy rating and lifted the price target on this fast-growing tech company's shares to $32.99 following the release of its half year results. The broker was pleased with its update and doesn't appear to have any concerns over the slow start made by the Figure Eight business. Overall, it suspects that management's guidance for the full year is conservative and has upgraded its forecasts for the near term. I agree with Citi and feel Appen would be a quality option for investors to consider buying today.
Freedom Foods Group Ltd (ASX: FNP)
Another note out of Citi reveals that its analysts have retained their buy rating and $5.65 price target on this diversified food company's shares following the release of its strong full year results. According to the note, its analysts were pleased to see Freedom Foods smash its estimates in FY 2019 and report widening margins. Another bonus is that the broker believes its intensive capital expenditure cycle could be coming to a close, which is likely to be a big boost to its overall performance in the coming years. I think Citi is spot on with Freedom Foods as well and believe it could be a great long term investment.
Prospa Group Limited (ASX: PGL)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $5.25 price target on this online lender's shares after it delivered a full year result ahead of its prospectus forecasts. Macquarie was pleased with its performance in FY 2019 and appears optimistic that there will be more of the same in the coming years if the company can execute its growth strategy successfully. Whilst I'm not a buyer of its shares just yet, I think it is well worth keeping a close eye on its performance in FY 2020.
