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:
Rio Tinto Limited (ASX: RIO)
According to a note out of Citi, its analysts have retained their buy rating and lifted the price target on this mining giant's shares to $114.00. The broker made the move after adjusting its commodity price forecasts favourably for a number of metals including copper and iron ore. However, the broker does note that iron ore prices carry a lot of downside risk following their stellar rise in 2019. I agree with Citi on Rio Tinto and feel it would be a great option in the resources sector.
Scentre Group (ASX: SCG)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted the price target on the shares of this property group to $4.72 following its decision to offload the office component of its Westfield Sydney asset to funds managed by Blackstone for $1.52 billion. According to the note, the broker believes this was a 10% premium to book value. It also estimates that Scentre's $800 million share buyback will be 2.9% accretive to its FFO. I think Goldman is spot on and feel Scentre would be a great option for income investors.
Vocus Group Ltd (ASX: VOC)
Analysts at UBS have upgraded this telco company's shares to a buy rating from neutral with a price target on $3.85. According to the note, the broker made the move after the Vocus share price tumbled significantly lower following the collapse of two takeover approaches. It believes the company's shares are trading at a level that would make it attractive for another suitor. Whilst I think UBS makes a good point, I'm not a buyer of its shares at this point.
