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:
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 $320.00. The broker made the move after upgrading its estimates due to favourable industry dynamics and its leading position in the immunoglobulins market. It suspects that management may upgrade its FY 2020 guidance when it releases its half year results. Another positive is that the northern hemisphere flu season appears to have started early and should support the growth of its Seqirus business. I agree with Credit Suisse and would be a buyer of its shares.
South32 Ltd (ASX: S32)
Analysts at Citi have retained their buy rating and lifted the price target on this mining giant's shares to $3.30. According to the note, the broker was relatively pleased with South32's quarterly update. During the quarter the company reported production growth for alumina, aluminium, silver, lead, and zinc. Overall, Citi continues to see value in its shares and remains positive despite its higher than normal tax rate. Whilst I think South32 could be a good option for investors, I have a preference for some of its rivals.
Super Retail Group Ltd (ASX: SUL)
A note out of Morgans reveals that its analysts have retained their add rating but trimmed the price target on this retailer's shares to $11.04. According to the note, the broker believes Super Retail's BCF and Macpac businesses could be negatively impacted the bushfires. However, it sees this as only a short term risk and remains positive on its outlook. It also likes the company due to its attractive valuation and generous dividend yield in a low interest rate environment. I agree with Morgans and feel Super Retail's shares are good value at this level.
