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:
Aristocrat Leisure Limited (ASX: ALL)
Analysts at UBS have retained their buy rating and $34.10 price target on this gaming technology company’s shares. According to the note, its research shows that Aristocrat is winning market share in the United States. In addition to this, surveys shows that buyers are showing a preference for Aristocrat’s products ahead of rivals. Overall, it feels this supports its buy rating and I would have to agree. Even after a strong share price gain this year, I still think its shares are great value given its growth profile.
Iluka Resources Limited (ASX: ILU)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this mineral sands producer’s shares to $10.00. According to the note, the broker believes that the demerger of its Mining Area C royalty business could be a big positive. This news appears to have made up for a mixed quarterly update which saw its solid production offset by weaker sales volumes. Whilst I agree that the demerger could unlock value for shareholders, it’s not enough for me to buy shares.
Origin Energy Ltd (ASX: ORG)
According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating and $9.45 price target on this energy company’s shares following its first quarter update. Origin Energy’s performance in the first quarter was in line with Goldman’s expectations. And although the performance of the Energy Markets business remains mixed, the broker continues to believe it will hit the top half of its guidance range. This is expected to support strong free cash flow and ultimately its dividends. Whilst it isn’t a share I’m a big fan of, it could be a good option for income investors. Goldman estimates that its shares provide a forward fully franked 5.4% dividend yield, which is attractive in this low interest environment.
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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.