With annual general meeting season in full swing and market volatility returning, brokers were kept very busy last week.
As you might expect, this led to countless broker notes hitting the wires.
Three that caught my eye are listed below. Here’s why brokers think you should buy these shares next week:
Coles Group Limited (ASX: COL)
A note out of Goldman Sachs reveals that it has initiated coverage on the supermarket giant with a buy recommendation and $14.80 price target. According to the note, the broker expects Coles to grow earnings before interest and tax by a CAGR of 7.1% through to FY 2021. This compares to forecasts of 5.2% CAGR growth over the same period for Woolworths Group Ltd (ASX: WOW). Furthermore, the broker expects Coles to pay a 70 cents per share dividend in FY 2020, meaning its shares offer a forward yield of 5.5%. I think Coles could be worth a look, especially if you are an income investor.
Costa Group Holdings Ltd (ASX: CGC)
According to a note out of UBS, it has retained its buy rating and $8.20 price target on this horticulture company’s shares following its annual general meeting update last week. The broker believes that Costa Group’s calendar year 2019 profit guidance of 30% growth is conservative and suspects the risk is to the upside thanks to improving earnings in Morocco and its mushroom expansion. I think Costa Group is a quality company and well worth considering next week.
Sealink Travel Group Ltd (ASX: SLK)
Analysts at Ord Minnett have retained their buy rating and lifted the price target on the ferry company’s shares to $5.09. According to the note, the broker believes that SeaLink Travel would be a good option for investors looking for reasonably priced options. Especially given that its earnings are largely defensive. I agree with Ord Minnett on SeaLink Travel now that oil prices have pulled back and due to its exposure to the Australian tourism boom.
And here are three more buy-rated shares to consider buying next week.
For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..
But knowing which blue chips to buy, and when, can be fraught with danger.
The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2019."
Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.
Click here to claim your free report.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP 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.