Brokers across Australia have been busy once again adjusting their discounted cash flow models and recommendations for many of the country's most popular shares.
Three buy recommendations that caught my eye are summarised below. Should you be buying these shares today?
Ansell Limited (ASX: ANN)
According to a note out of Citi, the broker has upgraded the personal care and safety products company's shares to a buy rating from neutral with an improved price target of $28.50. The broker has made the move due partly to its healthy balance sheet and management's plan to fuel growth through acquisitions. The combination of earnings accretive acquisitions and a potential US$600 million share buyback has led to the broker forecasting solid earnings growth over the medium term. While I do agree with Citi on most points, I would class its shares as a hold until acquisitions are announced and are able to be assessed.
Domino's Pizza Enterprises Ltd (ASX: DMP)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $65.00 price target on this pizza chain operator's shares after the Australian Fair Work Ombudsman completed its investigation. According to the note, the broker was pleased to see that the investigation found only a little underpayment and believes this is a weight of the shoulders of the company now. As a result, it feels that Domino's performance in the local market could improve as the negative media coverage slows. I would agree with Morgan Stanley on this one and feel Domino's would be a great long-term investment option.
Incitec Pivot Ltd (ASX: IPL)
Analysts at Deutsche Bank have retained their buy rating and $4.55 on Incitec Pivot's shares after Friday's investor day. The broker appears pleased with the performance of its Moranbah operation and management's confidence in the outlook for fertiliser prices. In addition to this, a $300 million share buyback should support the share price. While things are admittedly looking a lot more positive for the company now, I'm not a big fan of it due to its inconsistent performance over the last few years.
