Every week I like to take a look at recent research notes to see which shares brokers are tipping as buys and sells.
Three shares which have come out favourably this week and been given buy ratings are listed below. Here's why leading brokers think they are in the buy zone:
Mantra Group Ltd (ASX: MTR)
According to a research note out of the equities desk at Macquarie, its analysts have reiterated their outperform rating on the leading accommodation provider. The broker believes that Mantra trades at a significant discount to its global peers and has a $3.78 price target on its shares. That equates to potential upside of almost 25% from the last close price. I would have to agree with Macquarie on this one. With the tourism boom in full swing, I believe Mantra is a great buy and hold investment option today.
Star Entertainment Group Ltd (ASX: SGR)
A note out of Citi this morning reveals that analysts at the investment bank have reiterated their buy rating on the gaming, entertainment, and hospitality company. According to the note, Citi believes that Star is one of the best value shares on the ASX at present due to its growth prospects and the low multiple it changes hands at. The broker has a $6.65 price target on its shares. Like Mantra, I think Star is in a strong position to grow earnings at an above-average rate for the foreseeable future thanks to the tourism boom. Considering its relatively cheap price, this could make it an opportune time to snap up shares.
Suncorp Group Ltd (ASX: SUN)
Following a slight revision to the broker's full-year earnings forecast, UBS has given this leading insurer a buy rating and $15.50 price target this morning. According to the note, the investment bank believes that Suncorp is the best option in the insurance sector at present. I'm a big fan of the insurer and the work it has done on its new operating model. Whilst I think its shares are about fair value now, I still feel there could be significant upside potential in the long-term that makes it a great buy and hold investment today.
