It has been another busy week of corporate news and developments which has led to a large number of broker notes doing the rounds.
Three buy ratings that caught my eye are summarised below. Here's why brokers are bullish on these shares:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Goldman Sachs, it has retained its conviction buy rating and reduced the price target on this gaming technology company's shares slightly to $33.00. Although its FY 2018 result fell a touch short of expectations, Goldman believes the result was a reaffirmation of its view that Aristocrat Leisure remains on track to "deliver further market share gains in its core Land based slots business in the Americas as well as deliver earnings growth against a robust organic growth backdrop in mobile games." I agree with this view and think it will be worth considering once the dust settles on this result.
Bapcor Ltd (ASX: BAP)
Analysts at UBS have retained their buy rating and $7.05 price target on this auto parts retailer's shares after it announced the acquisition of five businesses. According to the note, the broker believes the acquisition will strengthen Bapcor's position as a supplier of parts to small and medium-size commercial vans and trucks. Which is a big bonus as these two markets are experiencing strong demand growth due to the growing number of delivery trucks on the road handling online shopping deliveries. I agree with UBS on Bapcor and think it could be a great option in the retail space.
Bellamy's Australia Ltd (ASX: BAL)
A note out of Citi reveals that it has retained its buy rating and $12.10 price target on this organic infant formula company's shares following yesterday's investor day. The broker was pleased to see the company outline the strategies it believes will lead to revenue hitting $500 million in FY 2021. I believe Bellamy's is capable of hitting this figure by FT 2021 if it is granted its SAMR accreditation in the near future. Given its positive medium to long term outlook, I think it could be worth buying its shares with a long term view.
