Earnings season certainly is a busy time of year for brokers. This week there have been countless research notes released upgrading and downgrading shares following the release of their results.
Three shares which have been given buy ratings this week are listed below. Here's why brokers have taken a shine to them:
Gateway Lifestyle Group (ASX: GTY)
According to a note out of the equities desks at Macquarie, its analysts have upgraded the senior citizens living solutions provider's shares to an outperform rating with a $2.08 price target. Although its FY 2018 guidance was below expectations, its analysts appear to be convinced that there is strong long-term growth ahead for the company thanks to the tailwinds of Australia's ageing population. I agree with Macquarie and believe that Gateway Lifestyle could be a good option for patient investors.
Mantra Group Ltd (ASX: MTR)
Following the release of its full-year results on Tuesday, Credit Suisse has upgraded the leading accommodation provider to an outperform rating with a $3.15 price target. The broker appears to be confident that weakness in problematic markets will be offset by strength in other key markets. I would have to agree with Credit Suisse on this one. I thought that Mantra delivered a solid full-year result and believe it offers investors a compelling risk/reward at the current share price.
Syrah Resources Ltd (ASX: SYR)
Another note out of Credit Suisse reveals that its analysts have retained their outperform rating and lofty $7.45 price target on the graphite miner's shares after it finalised the negotiation of a mining agreement with the Ministry of Mineral Resources and Energy of the Republic of Mozambique. The broker's target price implies potential upside of over 150% from the current share price. While I think that Syrah has a world-class asset, I would suggest investors hold off an investment until production has commenced at Balama.
