Last week was another busy one for brokers with countless buy and sell recommendations being made.
Three buy ratings that caught my eye are summarised below. Here's why these ASX shares have been rated as buys:
Altium Limited (ASX: ALU)
According to a note out of Goldman Sachs, it has initiated coverage on this PCB design software provider with a buy rating and $28.50 price target. Goldman believes that Altium is well-positioned to continue its strong growth thanks to market share gains from innovative new product launches and the expanding total addressable market that its Octopart business provides. In addition to this, the broker likes Altium for its attractive valuation. I agree with Goldman on Altium and think it would be a great long-term investment.
Origin Energy Ltd (ASX: ORG)
Analysts at Macquarie have retained their outperform rating and lifted the price target on this integrated energy company's shares to $9.20 following its investor day event. The broker appears pleased that the company reiterated its FY 2019 guidance and plans to pay a 20 cents per share dividend this year. This is subject to market conditions remaining the same and the regulatory and political environment not impacting its operations. In addition to this, Macquarie notes that Origin Energy has a strong cash flow outlook and expects this to be reflected in its dividend policy. While I agree that Origin looks attractive at these levels, I intend to wait for the Federal election before considering an investment.
Webjet Limited (ASX: WEB)
A note out of UBS reveals that its analysts have retained their buy rating and increased the price target on this online travel agent's shares to $20.20. UBS made the move in response to Webjet's recent $240 million acquisition of the Destinations of the World business. According to the note, the broker expects Webjet to deliver earnings growth of over 17% in FY 2019. In light of this, it believes the company's shares are attractively priced after a recent pullback. I think UBS is spot on with this recommendation and would class it as a share to buy.
