Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.
Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX 200 shares are in the buy zone:
Appen Ltd (ASX: APX)
According to a note out of UBS, its analysts have retained their buy rating and lifted the price target on this artificial intelligence (AI) company’s shares to $41.00. The broker has been looking into the industry and believes that Appen’s second half outlook is very positive. Especially given recent hiring activity, which it feels indicates that its government business is performing well. Overall, the broker remains very positive on its growth prospects over the medium term. I agree with UBS and think Appen would be a fantastic buy and hold option.
Goodman Group (ASX: GMG)
Analysts at Morgan Stanley have retained their overweight rating and lifted the price target on this property company’s shares to $20.00. According to the note, Goodman Group delivered an FY 2020 result in line with its expectations. And while its guidance for the year ahead is a little lower than the broker is forecasting, it notes that the company has consistently outperformed its guidance for a number of years. Furthermore, with the ecommerce tailwind in its sails, Morgan Stanley expects its strong form to continue into FY 2022 as well. I think Morgan Stanley is spot on and would be a buyer of Goodman Group’s shares.
Telstra Corporation Ltd (ASX: TLS)
A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating but trimmed their price target slightly on this telco giant’s shares to $3.90. According to the note, the broker was pleased with its FY 2020 result, but notes that its guidance has caused dividend doubts. However, the broker believes Telstra could shift its dividend policy to be based on free cash flow rather than earnings. If it does this, it would be able to sustain its 16 cents per share dividend. As such, it holds firm with its forecast for no dividend cuts in FY 2021. I agree with Goldman Sachs and feel Telstra would be a good option for income investors after its pullback.
These 3 stocks could be the next big movers in 2020
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Appen Ltd. 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.
- Is the Coles (ASX:COL) share price in the buy zone? – October 30, 2020 4:54pm
- Why the Carsales (ASX:CAR) share price dropped 4% today – October 30, 2020 4:19pm
- Why the Medical Developments International (ASX:MVP) share price is tumbling lower – October 30, 2020 3:53pm