Earnings season is now in full swing and brokers up and down Australia are responding to new data and share price moves with countless upgrades and downgrades.
Three shares which have found favour with brokers this week are listed below. Here's why they think they are in the buy zone:
ARB Corporation Limited (ASX: ARB)
According to a note out of Citi, its analysts have upgraded the motor vehicle accessories company's shares from neutral to a buy rating following the release of its full-year results yesterday. Citi appears confident that the company is pulling away from its competitors, so much so that it increased the price target on its shares to $17.85. I would agree with Citi on this one. Especially with the progress the company is making on its international sales. They grew 14.3% in FY 2017 and now account for 27.6% of total company sales.
CSL Limited (ASX: CSL)
A note out of UBS reveals that its analysts have retained their buy rating, but cut their price target on the biotherapeutics company's shares slightly to $141 following yesterday's full-year results announcement. Although the second-half was weaker than the first, UBS notes that this was due to one-offs and appears to believe it should be overlooked. I agree with this view and think the recent share price weakness post-earnings is an opportunity for investors to snap up a high-quality company at a cheaper price. In my opinion CSL is one of the best buy and hold options on the market.
Westfield Corp Ltd (ASX: WFD)
Credit Suisse has upgraded the shopping centre operator to an outperform rating with an $8.95 price target according to a note released this morning. The broker thinks that the sharp drop in its share price this year is a buying opportunity, especially considering Westfield has reaffirmed its four-year profit guidance. Whilst I do agree that Westfield looks to be good value and believe it has some high quality assets, I'm not overly bullish on retail foot traffic. If traffic doesn't improve then I am concerned that Westfield could suffer from falling rents and fall short of its long-term profit forecasts.
