The broker reports have been coming in thick and fast after last week's exceptionally busy period of results releases.
Three shares that have found favour with brokers are listed below. Here's why they have been given buy ratings:
Mayne Pharma Group Ltd (ASX: MYX)
According to a note out of Credit Suisse, it has retained its outperform rating and lifted the price target on the pharmaceutical company's shares to $1.20. The broker appears to have been pleasantly surprised by Mayne Pharma's better than expected full year results last week. And although it has concerns about increasing competition for its key Dofetilide product, it expects this to be offset by new product launches. While it isn't the bargain buy it was six months ago, I would have to agree with Credit Suisse that Mayne Pharma's shares are in the buy zone still.
Medibank Private Ltd (ASX: MPL)
A note out of Deutsche Bank reveals that its analysts have retained their buy rating and $3.40 price target on the private health insurance company's shares despite last week's disappointing full year results release. According to the note, the broker saw enough in its results to believe that Medibank Private's core business in back on track. I'm not as bullish on Medibank Private right now and would suggest investors wait for a better entry point at a much lower price.
Westpac Banking Corp (ASX: WBC)
Analysts at Goldman Sachs have retained their buy rating but lowered their price target on this banking giant's shares to $34.43. The broker appears to have been taken by surprise by Westpac's soft third quarter performance but was pleased with its CET1 ratio of 10.4% and credit quality. Goldman believes that this should mean its current dividend is sustainable, which supports its buy thesis. I would agree with Goldman on Westpac and think this recent share price weakness is a buying opportunity. Especially for income investors now that its shares provide a trailing fully franked 6.8% yield.
