Many of Australia's top brokers have been busy adjusting their discounted cash flow models and recommendations accordingly this week.
This has led to a number of broker notes hitting the wires. Some have been positive, some not so.
Three shares that were given buy ratings this week are listed below:
Cochlear Limited (ASX: COH)
According to a note out of Citi, its analysts have upgraded this hearing solutions company's shares to a buy rating from neutral and increased the price target on them to $198.00. Citi made the move after Cochlear's shares were sold off over the last couple of weeks and dropped to an attractive entry level. In addition to this, the broker believes that recent competitive pressures in the Americas will ease and Cochlear's implant growth in the region will resume next year. I agree that Cochlear's shares are in the buy zone right now.
Metcash Limited (ASX: MTS)
Analysts at Goldman Sachs have retained their conviction buy rating and $3.30 price target on this wholesale distributor's shares following its strategy update on Monday. The broker was already very bullish on Metcash after its solid first half, and now believes that the successful implementation of all its strategic plans could provide significant upside from its estimates. Combined with its current valuation, Goldman appears to believe that Metcash could generate strong returns for shareholders in the future. Whilst it isn't my first pick in the industry, it could be worth considering at current levels.
Mineral Resources Limited (ASX: MIN)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on this mining and mining services company's shares to $20.80. According to the note, the broker expects Mineral Resources to benefit from favourable iron ore prices and its exposure to lithium. Furthermore, Morgan Stanley feels that its shares are changing hands on an undemanding valuation, making it an attractive option in the resources sector. I think Morgan Stanley makes some great points here and Mineral Resources could be worth a closer look.
