Top brokers up and down Australia have been busy adjusting financial models and recommendations again.
This has resulted in a few shares being given buy ratings. Three that caught my eye are listed below. Here's why brokers think you should buy them:
Baby Bunting Group Ltd (ASX: BBN)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $2.10 price target after it emerged that Toy R Us Australia has entered voluntary administration after failing to find a buyer. Although the broker acknowledges that another competitor closure could weigh on its performance in the short term due to the negative impact of significant clearance sales, it would be a positive in the longer term. I agree with Morgan Stanley on Baby Bunting and think it could be a great option for patient investors.
Rio Tinto Limited (ASX: RIO)
A note out of the Macquarie equities desk reveals that it has retained its outperform rating and lifted the price target on the mining giant's shares to $94.00. The broker made the move on the back of reports that Rio Tinto is close to offloading its Grasberg asset. Macquarie believes that a price tag of US$3.5 billion for its Grasberg asset would be a positive result for shareholders. I think that Macquarie is spot on with this one and Rio Tinto would be a great investment option in the resources sector.
Syrah Resources Ltd (ASX: SYR)
Analysts at Credit Suisse have retained their outperform rating and $6.60 price target after the graphite miner announced that it has signed a purchase agreement for an industrial site in Louisiana for its battery anode material plant. Under the terms of the agreement, the purchase price of US$1.225 million is for a 25 acre site with an existing 50,000 square foot industrial building. While I do think that this is a positive for Syrah, I'm not a buyer of its shares just yet. I'd like to wait and see what type of prices the company's massive Balama project commands before snapping up shares.
