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:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and lifted the price target on this gaming technology company's shares to $34.50. Macquarie believes Aristocrat Leisure is capable of delivering on the market's expectations this year and feels its shares are undervalued at 19x estimated forward earnings. It has suggested that 22x earnings is more appropriate given its current growth profile. I agree with Macquarie and would class its shares as a buy.
Northern Star Resources Ltd (ASX: NST)
Another note out of the Macquarie equites desk reveals that its analysts have upgraded this gold producer's shares to an outperform rating and lifted the price target on them to $14.20. According to the note, the broker made the move after upgrading its gold price forecasts. It expects the price of the precious metal to reach US$1,650 an ounce during FY 2020. If you're bullish on gold then I think Northern Star would be a good option at this level.
Westpac Banking Corp (ASX: WBC)
Analysts at Citi have retained their buy rating and $31.25 price target on this banking giant's shares. According to the note, the broker remains positive on Westpac despite forecasting a reduction in its dividend due largely to regulatory changes in New Zealand. This year the broker has forecast a cut to 179 cents per share and then in the years that follow it expects a dividend of 170 cents per share. The latter equates to a fully franked 5.7% dividend yield based on today's price. I think this makes it a great option for income investors.
