It has been another busy day for brokers up and down Australia. Amongst the many research notes released this morning, three in particular with buy recommendations caught my eye.
Here's why brokers think these three shares are in the buy zone today:
Altium Limited (ASX: ALU)
A research note out of Deutsche Bank reveals that its analysts have reiterated their buy rating and $8.80 price target on the exciting software-as-a-service company's shares. Although its analysts acknowledge that Altium looks expensive on paper, they believe its explosive revenue growth justifies the premium. I would have to agree with Deutsche on this one. After all, management believes that demand for its printed circuit board design software has put it on course to almost double its revenue to US$200 million by 2020.
CSL Limited (ASX: CSL)
Analysts at Credit Suisse have reiterated their outperform rating and increased their price target on CSL's shares to $134. According to the note, Credit Suisse believes demand for its immunoglobulin product has remained strong at home in Australia and overseas in the United States and Canada. As a result the investment bank forecasts CSL to grow earnings quicker than current market expectations. This is another recommendation that I agree with. Thanks to the growing demand for its immunoglobulin product and the positive performance of its Seqirus influenza vaccine business, I believe CSL would be a fantastic buy and hold investment.
St Barbara Ltd (ASX: SBM)
According to a research note out of the equities desk at Macquarie, its analysts have reiterated their outperform rating and increased the price target on the gold miner's shares to $3.00. Macquarie appears to be pleased with both the grade and the level of gold production at its Gwalia and Simberi mines. I do like St Barbara, but I'm reasonably bearish on gold prices so I wouldn't invest in the miner today. As impressive as its record production has been, if gold prices plunge it won't be enough to hold up its share price in my opinion.
