Earnings season certainly is a busy time for brokers up and down Australia. As new data becomes available, brokers must revisit their financial models and adjust things accordingly.
Two shares which have come out favourably and been given buy ratings are listed below. Here's why brokers think they are in the buy zone:
Capilano Honey Ltd (ASX: CZZ)
According to a research note out of Morgans, its analysts have retained their add rating and placed an $18.05 price target on this leading honey producer's shares following the release of its full-year results. Whilst Morgans doesn't appear to have been hugely impressed with those results, it was pleased to see margins increase. Furthermore, the broker remains confident that the company will return to growth again in the near future. Whilst I would prefer to buy its shares at a cheaper price, patient investors that are willing to hold its shares for the long-term could do a lot worse than Capilano Honey.
Domino's Pizza Enterprises Ltd. (ASX: DMP)
Despite there being concerns over the Domino's app losing momentum in Europe and takeaway aggregators like Menulog and UberEATS gaining market share in Australia, a research note out of UBS reveals that the broker continues to see significant upside potential for the pizza chain operator's shares and has reiterated its buy rating. UBS has a price target of $71 for Domino's, approximately 37% higher than the current share price. Whilst its analysts have recognised the aforementioned concerns, they don't appear convinced that the impact will be as great as the market has made out. I would have to agree with UBS on this one. I think after its recent share price decline, Domino's is great value today.
