Yesterday I had a look at a number of shares which have been given sell ratings by brokers.
Today I thought I would take a look at the shares which have found favour with brokers this week and been given buy ratings. Here are three that caught my eye:
Appen Ltd (ASX: APX)
According to a note out of UBS, analysts at the investment bank have initiated coverage on Appen with a buy rating and massive $9.80 price target. The broker believes that the company is well positioned to continue growing its bottom line at a strong rate over the next few years due to the rapid growth of the artificial intelligence industry. I would agree that Appen looks like an attractive investment option following its acquisition of Leapforce this week.
Fortescue Metals Group Limited (ASX: FMG)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating and $6.10 price target on the iron ore producer's shares following the announcement of its new CEO and CFO. Furthermore, the broker appears pleased with its decision to target the production of higher grade iron ore in the future. Considering the significant discount of low grade iron ore at the moment, this strikes me as a smart move by management and could make it a good investment at the current share price.
SG Fleet Group Ltd (ASX: SGF)
Analysts at Citi rate the fleet management services provider as a buy with a $4.85 price target. SG Fleet is now one of the broker's favoured plays in the industry and expects it to benefit from industry consolidation. The broker has downgraded rivals Smartgroup Corporation Ltd (ASX: SIQ) and McMillan Shakespeare Limited (ASX: MMS) to neutral at the same time. Whilst it wouldn't be my first pick in the industry, I do think it could be a good option for investors.