With so much choice on the Australian share market it can be hard to decide which shares to buy.
Fortunately, brokers across the country have done a lot of the hard work so you don't have to.
Three shares that they have given buy ratings to this week are listed below. Here's why they are bullish on their prospects:
BT Investment Management Ltd (ASX: BTT)
According to a note out of Morgans, its analysts have retained their add rating but reduced their target price from $12.28 to $11.45 after the release of the fund manager's latest quarterly funds under management update. Although the company's JO Hambro business continues to see small outflows, Morgans believes this will improve in line with market sentiment and is not a structural issue. While it wouldn't necessarily be my first pick in the industry, I think it is reasonably priced now for an investment.
Rio Tinto Limited (ASX: RIO)
Another note out of Morgans reveals that its analysts have upgraded this mining giant's shares to add rating from hold. The broker has also raised the price target on Rio Tinto's shares to $81.51 from $74.75. Morgans believes that Rio Tinto's shares are trading at an attractive level and sees potential upside for aluminium prices amid a tightening market. I would have to agree with Morgans on this one. As long as a global trade war doesn't occur, I think Rio Tinto is positioned to deliver strong earnings and dividend growth over the next couple of years.
Transurban Group (ASX: TCL)
A note out of the equities desk of Macquarie reveals that its analysts have retained their outperform rating and $12.44 price target on the toll road giant despite plans being made for a $10 billion rail link between Tullamarine airport and the Melbourne CBD. The broker believes that any loss of volume to the rail link will be offset by population growth. I would agree with Macquarie on this prediction, however, I'm not a buyer of its shares at the current price. Especially if bond yields widen over the next 12 months and put pressure on the share prices of bond proxies.
