As always a number of brokers across Australia have been busy reevaluating shares as new data becomes available.
Whilst not all shares have fared so well, the following three shares have found favour with leading brokers this week:
Charter Hall Group (ASX: CHC)
Analysts from Morgan Stanley have upgraded the real estate investment trust to an overweight rating with a $5.65 price target. According to the release the investment bank expects Charter Hall to deliver strong growth in free funds from operations in the medium term thanks to its office portfolio. Whilst Charter Hall is an attractive option because of its generous dividend, I have concerns that its retail portfolio could weigh heavily on its results. In light of this you won't find me buying at the current share price.
Fortescue Metals Group Limited (ASX: FMG)
Morgan Stanley has also upgraded this leading iron ore miner to an equal-weight rating with a $6.30 price target. The research note reveals that its analysts believe that following the recent weakness in iron ore prices, the Fortescue Metals share price has fallen to what it deems to be fair value. Whilst I agree that the miner is far more attractive at current prices, I still believe iron ore prices have the potential to fall significantly over the next 12 months. As this could drag its shares lower, I think investors would be better off holding tight.
Myer Holdings Ltd (ASX: MYR)
Ahead of its half-year results release on Thursday, analysts at Citi have reiterated their buy rating and $1.40 price target on the department store operator's shares. Citi expects Myer to report a 2.2% increase in like-for-like sales, thanks largely to strong Christmas trading. I have been impressed with Myer's turnaround and wouldn't be surprised to see it deliver on Citi's expectations. Considering short interest dropped sharply this week, it appears many in the market could be expecting a solid result.
