On Monday I had a look at three shares that brokers had slapped sell ratings on this week.
Today I thought I would look at the shares that have found favour with brokers and been given the much-coveted buy rating.
Here are three that caught my eye:
Class Ltd (ASX: CL1)
According to a note out of Morgans, its analysts have retained their add rating and $3.25 price target on the fintech company's shares. Morgans appears to have been pleased with Class' latest quarterly update and believes it is on track to achieve the broker's FY 2018 forecasts. While the broker has noted that regulatory and competitive pressures have slowed the company's growth, it remains confident these are short term and that Class is capable of delivering sustainable double-digit earnings growth. I'm not as bullish on Class as Morgans is, but I do think it could be worth a closer look after its sizeable share price decline.
Perseus Mining Limited (ASX: PRU)
Analysts at Credit Suisse have retained their outperform rating and 69 price target on the gold miner after the release of its March quarter production update on Monday. According to the note, the quarterly update was largely in line with the broker's expectations and it appears to believe that the company is on track to achieve the middle of its full-year guidance. While I'm not a big fan of the gold miners in the current environment, it does seem like a reasonable option for investors that are looking to gain exposure to the precious metal.
Qantas Airways Limited (ASX: QAN)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $6.71 price target on the airline's shares after it avoided the Rolls-Royce engine issues. Those issues relate to some of Rolls-Royce's Trent 1000 engines which are experiencing faster-than-expected corrosion of the turbine and compressor fan blade. This will cause service disruptions due to increased monitoring and repair requirements for rivals including Air New Zealand Limited (ASX: AIZ), British Airways, Singapore Airlines' Scoot, and Thai Airways. Of all the airlines affected, a total of 1.2 million passengers to Australia were expected over the next 12 months. With restrictions being placed on the distance these planes can fly, this could potentially be a win for Qantas through a short term lessening of competition. I think Goldman makes a great point and Qantas could be well considering today, as long as the oil price stabilises.
