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)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and lifted the price target on this gaming technology company's shares to $37.50. Macquarie notes that Aristocrat Leisure delivered a stronger than expected profit in FY 2019. It appears confident that there will be more of the same in the new financial year. Another positive is its strengthening balance sheet, which it feels could lead to further acquisitions or capital management initiatives. I agree with Macquarie and continue to rate Aristocrat Leisure's shares as a buy.
Lendlease Group (ASX: LLC)
A note out of Citi reveals that its analysts have retained their buy rating and lifted the price target on Lendlease's shares materially to $24.72. According to the note, the broker believes that the company's successful evolution into a global real estate developer and fund manager could lead to a re-rating of its shares. In addition to this, it appears to believe Lendlease is well-positioned for growth thanks to its burgeoning urbanisation pipeline. I would have to agree with Citi on Lendlease. I think it could be a great long-term option now after a difficult couple of years.
Westpac Banking Corp (ASX: WBC)
Analysts at Morgans have retained their add rating but trimmed their price target on this banking giant's shares to $30.50. According to the note, the broker feels that the recent selloff of its shares has been overdone and created a buying opportunity for investors. That selloff has been caused by allegations that Westpac breached 23 million anti-money laundering and counter-terrorism finance laws. Morgans doesn't believe the civil penalty will be greater than $2 billion. Whilst the whole affair has been very disappointing, I would have to agree that its shares do look oversold at these levels. But a rebound may take some time given how poor sentiment is right now.
