A large number of broker notes have hit the wires this week, leading to many popular shares being declared buys and sells.
Three shares that are in favour with brokers and have been given a buy rating are listed below. Here's why they are bullish on them:
Helloworld Travel Ltd (ASX: HLO)
According to a note out of Ord Minnett, its analysts have retained their buy rating and $6.14 price target on this integrated travel company's shares. The broker believes that the recent share price decline caused by a political scandal is a buying opportunity for investors. It suspects that the market is concerned that Helloworld could lose its Federal Government contracts, but notes that any potential loss would only have a small impact on its earnings. I agree with Ord Minnett on Helloworld and feel it would be a great option for investors. Especially considering its shares are changing hands at under 14x estimated earnings and offer a 4% fully franked forward dividend.
ResMed Inc. (ASX: RMD)
A note out of Deutsche Bank reveals that its analysts have upgraded this sleep treatment-focused medical device company's shares to a buy rating with a US$125.00 (~A$17.53) price target. According to the note, although the broker felt ResMed's second quarter result was underwhelming, it believes this was due to the company's ROTW segment cycling a particularly strong prior period. Deutsche believes investors ought to look beyond this and to the large growth opportunity the company has from increasing awareness and the further penetration of the sleep apnoea market. I agree with Deutsche Bank on ResMed and believe it would be a great investment.
Wesfarmers Ltd (ASX: WES)
Analysts at Morgans have retained their add rating and $36.50 price target on this conglomerate's shares after the Bunnings Investor Day event. According to the note, the broker appears pleased with the growth opportunities that the company is considering for Bunnings. These include the expansion of several categories and the launch of a fully transactional website. In addition to this, the broker appears pleased that the company's balance sheet gives it the flexibility to take advantage of opportunities when necessary. I think Morgans is spot on and agree that Wesfarmers is a buy.
