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:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of the Macquarie equities desk, it has retained its outperform rating and lifted the price target on this iron ore producer's shares to $10.30. Macquarie thought that Fortescue's performance in the first quarter was solid. It was also pleased with its lower than expected costs during the quarter. I agree with Macquarie on Fortescue's quarter and also that it is in the buy zone.
Qantas Airways Limited (ASX: QAN)
A note out of Citi reveals that its analysts have retained their buy rating and $6.90 price target on this airline's shares following its first quarter update. According to the note, Citi has reduced its earnings forecasts in response to the Hong Kong protests and the negative impact of the trade war on freight demand. However, it believes these issues are transitory and remains positive on the company's prospects. Especially given a rational domestic market and positive changes being made by its international business. I think Citi is spot on with Qantas and continue to see it as a good option for investors.
Westpac Banking Corp (ASX: WBC)
Analysts at Morgans have retained their add rating and $33.00 price target on this banking giant ahead of its full year results. According to the note, the broker suspects that Westpac may opt to cuts its final dividend down to 84 cents per share. Its analysts believe this will go down well with the market and could send its shares higher. I think Morgans makes a great point and would agree that it is a buy also. It is worth noting that even if Westpac does cut its dividend down to this level, it still equates to a generous 5.8% yield on an annualised basis.
