Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.
Here’s why brokers think investors ought to buy them next week:
InvoCare Limited (ASX: IVC)
According to a note out of the Macquarie equities desk, its analysts have upgraded this funeral company’s shares to an outperform rating but cut the price target on them to $15.60 following the release of its half year results. InvoCare’s first half result came in below its expectations, but Macquarie believes it can still achieve its guidance if it has a strong second half. Furthermore, the broker believes its current valuation, defensive qualities, and earnings visibility make it an attractive option. Whilst I’m not a huge fan of InvoCare, I think Macquarie makes some good points.
Telstra Corporation Ltd (ASX: TLS)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $4.20 price target on this telco giant’s shares following its full year results release. According to the note, Goldman was pleased with Telstra’s strong FY 2019 result and notes that its core EBITDA came in 2% higher than its estimates and ahead of the company’s prior guidance. And although the company’s guidance for FY 2020 was a touch under its expectations due to the greater than expected NBN headwind, Goldman continues to see value in its shares at the current level. I agree with the broker on this one and feel Telstra would be a good option for investors.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at Credit Suisse have retained their outperform rating but cut the price target on this wine company’s shares slightly to $19.30. According to the note, the broker was pleased with its FY 2019 result and particularly its increase in revenue per case. Looking ahead, Credit Suisse believes the company can achieve its guidance in FY 2020 and notes that the company should benefit from a big year of Australian and Californian vintages the following year. In addition to this, its analysts see an opportunity for Treasury Wine Estates to grow its market share in China, just as long as a slowdown in economic growth doesn’t impact demand. I think Credit Suisse is spot on with this one and would class its shares as a buy.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Treasury Wine Estates Limited. The Motley Fool Australia has recommended InvoCare Limited. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019