Brokers have been kept especially busy this week with plenty of corporate news, annual general meetings, and falling share prices.
This has led to a number of broker notes hitting the wires. Three shares that have fared well and been given buy ratings are listed below, here's why brokers are bullish on them:
Caltex Australia Limited (ASX: CTX)
A note out of Credit Suisse reveals that its analysts have upgraded this fuel retailer's shares to an outperform rating from neutral with an increased price target of $33.07. According to the note, the broker acknowledges that there are risks, but believes that its undemanding valuation and convenience retail growth plans make it an attractive option for investors. I agree with Credit Suisse on this one. After all, based on the broker's forecasts, Caltex's shares are currently trading at just 13x forward earnings.
NEXTDC Ltd (ASX: NXT)
Analysts at UBS have retained their buy rating and $9.30 price target on this data centre operator's shares after it provided an update on its Sydney S2 data centre. That update revealed that NEXTDC has increased its contracted commitments by approximately 9MW to more than 14MW since the end of the financial year. In addition to this, due to strong demand the company pulled forward its third build out phase. The broker believes this is a reminder of how NEXTDC is well-positioned to benefit from the structural shift to the cloud. While its shares are certainly risky, I do agree that they could be a great buy and hold investment.
Northern Star Resources Ltd (ASX: NST)
According to a note out of the Macquarie equities desk, its analysts have upgraded this gold miner's shares to an outperform rating with a $9.80 price target. The broker made the move after Northern Star announced legally binding offers to acquire the 49% stake in the East Kundana Joint Venture that it does not already own from Tribune Resources Limited (ASX: TBR), Rand Mining Limited (ASX: RND) and Rand Exploration NL for $150 million in cash. The broker thinks that this is a good move by management and believes it is well-positioned to drive through the deal. While I agree that this is a positive move by the company, I'm staying clear of gold miners for now.
