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:
Lendlease Group (ASX: LLC)
According to a note out of Citi, its analysts have retained their buy rating and $24.72 price target on this international property company’s shares. The broker notes that Lendlease has agreed to sell its Engineering business to Acciona for $180 million. And while it will be retaining the troubled Melbourne Metro project, the broker appears to see the overall sale as a positive. It also continues to believe that its shares could re-rate over the coming years as it evolves to a global property developer and fund manager. I agree with Citi and feel that it would be a great long-term investment.
Pushpay Holdings Ltd (ASX: PPH)
Analysts at UBS have retained their buy rating and lifted the price target on this payments company’s shares to NZ$4.60 (A4.40). According to the note, the broker has lifted its price target to reflect an upgrade to its earnings forecasts. This is due to stronger payment margins and revenue synergies following the recent acquisition of Church Community Builder for US$87.5 million. I think UBS is spot on and would class Pushpay as a buy.
QBE Insurance Group Ltd (ASX: QBE)
A note out of Morgan Stanley reveals that it has held firm with its overweight rating and $14.00 price target on this insurance giant’s shares following its North American update. According to the note, the broker wasn’t surprised by the update. It had been expecting adverse weather to impact the company’s crop combined operating ratio. It appears optimistic that this will be offset by a favourable level of natural catastrophes globally in 2019. While I think Morgan Stanley makes some fair points, I’m not a big fan of insurance shares due to their volatile performances.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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.
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