Yesterday I had a look at a number of shares which were given sell ratings by leading brokers this week.
Today I thought I would look at the shares which have found favour with brokers and been given buy ratings or equivalents. Here are three which caught my eye:
Macquarie Group Ltd (ASX: MQG)
According to a note out of UBS, its analysts have retained their buy rating and $103 price target on the investment bank's shares. Although the broker is reasonably pessimistic on the Australian banking sector due to falling house prices and slowing growth, Macquarie is its first pick in the sector. Whilst I would prefer to buy its shares are at a lower price, I feel Macquarie is a good option for income investors at the current price.
South32 Ltd (ASX: S32)
Analysts at Morgan Stanley have upgraded the miner to an overweight rating from equal weight and increased the price target on its shares to $3.75. Its analysts have made the move after making revisions to their commodity price forecasts. The broker expects to see improvements in the prices of coal, manganese, and aluminium, leading to a stronger than previously expected performance from South32 in FY 2018 and FY 2019. Although it wouldn't be my first pick in the sector, I do think South32 could be worth a look if commodity prices continue to improve.
Transurban Group (ASX: TCL)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating and increased the price target on the toll road company's shares to $13.20. The broker appears to believe that the West Gate Tunnel project will provide a strong return for the company. I'm a big fan of Transurban and its near monopoly on toll roads in Australia. As a result, I would agree with Credit Suisse that it has the potential to outperform over the next 12 months.