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:
Megaport Ltd (ASX: MP1)
According to a note out of UBS, its analysts have retained their buy rating and lifted the price target on Megaport's shares slightly to $4.90 following its quarterly update. That update revealed that in the second quarter the company increased its reported revenue by 21% to $8.3 million and monthly recurring revenue by 14%. The broker was pleased with its performance and continues to believe that Megaport will benefit from the accelerated growth momentum in the public cloud market. Although it is a high risk investment option, I agree that it is a buy.
Orocobre Limited (ASX: ORE)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating but cut the price target on this lithium miner's shares slightly to $5.15 following its update. According to the note, the broker believes that the lack of commentary around pricing in yesterday's update means that softer prices may have continued into January. Despite this, Credit Suisse appears positive on Orocobre's long term prospects and sees its shares as a buy. While I do like Orocobre, I would like to see improvements in lithium prices before considering an investment.
South32 Ltd (ASX: S32)
Analysts from the Macquarie equities desk have retained their outperform rating and $3.80 price target on this diversified miner's shares following its December update. According to the note, the broker was pleased with its performance during the quarter and believes that it has put South32 in a position to look at further capital management initiatives. I agree with Macquarie on this mining giant and think it is well worth considering following its solid quarter.
