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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and $16.70 price target on this infant formula and fresh milk company’s shares following its China strategy day. The broker notes that the company has a significant opportunity in the country and was pleased with management’s deep understanding of the market. I agree with Macquarie on a2 Milk Company and believe it would be a great long-term investment option.
Ramsay Health Care Limited (ASX: RHC)
Another note out of the Macquarie equities desk reveals that it has upgraded this private hospital operator’s shares to an outperform rating with a $71.50 price target. According to the note, the broker believes that Ramsay’s valuation is undemanding. Especially given its Australian brownfield projects which it expects to help offset some of the headwinds caused by reduced participation in private health insurance. In addition to this, the broker notes that the outlook for its UK and France businesses is improving. Whilst I am a fan of the company, I’d like to see an improvement in trading conditions in Australia before picking up shares.
Redbubble Ltd (ASX: RBL)
Analysts at Goldman Sachs have upgraded this ecommerce company’s shares to a buy rating with a $1.65 price target. According to the note, the broker’s research shows that recent product launches are gaining traction with artists. And with more product launches due in the near term, the broker appears confident that Redbubble will return to stronger growth once algorithm changes are cycled in the coming weeks. Overall, Goldman expects the company to grow its revenue by a CAGR of 23% from FY 2019 to FY 2022. I agree and think it could be worth taking a closer look at Redbubble’s shares at their current level.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Ramsay Health Care Limited and REDBUBBLE FPO. 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.