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:
Collins Foods Ltd (ASX: CKF)
Analysts at Morgans have upgraded this quick service restaurant operator’s shares to an add rating with an increased price target of $11.76. According to the note, following the release of its half year results this week, Morgans believes Collins Foods is on course to deliver strong profit growth in FY 2020. It also notes that the company’s balance sheet is strong, which gives it the option to accelerate its growth through earnings accretive acquisitions. I think Morgans is spot on and would class its shares as a buy.
CSL Limited (ASX: CSL)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted the price target on this biotherapeutics company’s shares to $305. The broker believes that a tight plasma market in Europe could lead to price increases in line with US levels and boost its bottom line. Overall, it believes its shares are deserving of their premium valuation and are still good value even after their strong gains this year. I agree with Credit Suisse and would also be a buyer of its shares.
Virgin Money UK PLC (ASX: VUK)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this UK-based bank’s shares to $3.70. According to the note, Virgin Money UK delivered a full year result that was largely in line with expectations. In addition to this, the broker was pleased with its business lending growth and management’s guidance for FY 2020. And while it does have concerns over its medium term return on equity targets, it still believes it would be a good option for investors at this level. While I think Virgin Money could be worth considering, I’d like to see how Brexit plays out before investing.
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James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended Collins Foods Limited. 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.