This morning a number of leading brokers released research notes giving their latest opinion on many ASX shares.
Three shares which fared well and received buy ratings are listed below. Here's why brokers think they are in the buy zone:
Metals X Limited (ASX: MLX)
A research note out of Bell Potter reveals that its analysts have upgraded the diversified miner to a buy rating with an 85 cents price target. Although production in its latest quarter was reasonably mixed, its new target of 40,000 tonnes of copper-in-concentrate per annum appears to have caught the eye of brokers. Whilst it wouldn't be my first pick in the resources sector, I do believe there would be reasonable upside potential if the company can deliver on its targets.
RCG Corporation Ltd (ASX: RCG)
Analysts at Citi have upgraded the footwear retailer to a buy rating with an 88 cents price target. With its shares down by almost half since the turn of the year, Citi's analysts believe its shares are now attractive to value investors. With its cheap price and generous dividend yield I would agree that it looks attractive right now. But I am concerned that earnings could continue to decline, forcing a cut to its dividend. For this reason I would hold off an investment until things improve.
REA Group Limited (ASX: REA)
According to another research note out of Citi, its analysts have reiterated their buy rating and increased their price target on REA Group's shares to $72.50. Citi appears to be pleased with the company's new pricing structure. It expects agent fees to increase by an average of 15%, which is greater than anticipated. Whilst REA Group has not confirmed these reports, if they are true then I feel it would be a major boost to the company's bottom line. This will go some way to justifying the premium its share trade at.
