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:
Kathmandu Holdings Ltd (ASX: KMD)
Analysts at Credit Suisse have retained their outperform rating and lifted the price target on this adventure retailer's shares to NZ$3.00 (A$2.86) following the release of a trading update. According to the note, the broker was pleased with the update and notes that its earnings guidance for FY 2019 was notably higher than the market's expectations. Whilst it isn't my first pick in the sector, I agree with Credit Suisse that Kathmandu could be worth considering at the current level.
Qantas Airways Limited (ASX: QAN)
A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $7.64 price target on this airline operator's shares ahead of its full year results release later this month. According to the note, the broker is confident that Qantas will deliver a strong result in FY 2019. The broker expects the airline to report solid RASK growth for the full year and suspects capital management activities could continue given its forecast for strong cash flow generation. I think Goldman Sachs is spot on and feel Qantas would be a good investment.
Transurban Group (ASX: TCL)
According to a note out of Ord Minnett, its analysts have retained their buy rating and $16.75 price target on this toll road operator's shares following its full year results release. The main takeaway from the result for its analysts was the company's decision to raise $700 million to fund the purchase of the remaining stakes in the M5 West. The broker believes this is a good move and expects it to generate a solid return on capital. I agree with Ord Minnett on Transurban and believe it would be a great option for investors, especially given how low interest rates have gone.
