With earnings season just around the corner and quarterly updates coming out thick and fast, brokers have certainly been kept on their toes this week.
Three shares that have found favour with brokers and been given buy ratings are listed below. Here’s why they are tipped to shine:
Afterpay Touch Group Ltd(ASX: APT)
According to a note out of Bell Potter, its analysts have retained their buy rating and doubled the price target on this payments company’s shares to $21.00. The broker made the move on the back of Afterpay Touch’s stellar business update released yesterday. Bell Potter’s analysts believe Afterpay is a next generation Paypal and that investors ought to focus less on its earnings and more on its market share gains because first mover advantage is key. Yesterday’s update revealed that 10% of all online purchases in Australia go through it platform. Furthermore, the company has had a solid start to life in the United States and has agreements in place with upwards of 400 retailers so far. I agree with Bell Potter on this one. While it certainly is a high-risk investment due to its valuation, I do believe it has the potential to be a future blue chip share.
Navitas Limited(ASX: NVT)
Analysts on the Macquarie equities desk have upgraded this education services provider’s shares to an outperform rating from neutral with a $4.55 price target. The broker made the move after the company advised that it will undertake a rationalisation program to address the profitability of parts of its Careers and Industry segment portfolio and create a solid foundation for growth in the segment. The broker appears pleased with the move and believes value is starting to emerge. While I’m not a fan of Navitas, I do think Macquarie could be onto something. Especially with its shares trading within sight of their 52-week low.
OZ Minerals Limited(ASX: OZL)
A note out of Citi reveals that its analysts have retained their buy rating and lifted the price target on the copper miner’s shares to $11.10 following its recent quarterly production update. The broker appears pleased with its quarter and feels it is a great option for investors looking to gain exposure to copper. Citi doesn’t appear concerned by recent weakness in copper prices and expects structural constraints on supply to lead to higher prices in the long-term. I agree with Citi on OZ Minerals, just as long as a US-China trade war doesn’t derail global economic growth.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.