Last week was a busy one filled with countless broker note releases following a large number of half year results and corporate developments.
Three buy ratings that caught my eye are summarised below. Here's why brokers think investors ought to buy them next week:
Accent Group Ltd (ASX: AX1)
According to a note out of Citi, its analysts have retained their buy rating and lifted the price target on this footwear retailer's shares to $1.75 following its strong half year results last week. Citi was pleased with Accent's performance in the first half and the fact that its trading has remained strong despite consumer sentiment weakness following the housing market slowdown. Looking ahead, Citi believes that management's decision to buy franchised stores will be a key driver of earnings growth next year. I agree with Citi on Accent and believe it is a great option for investors.
Afterpay Touch Group Ltd (ASX: APT)
Analysts at Goldman Sachs have retained their conviction buy rating and $19.25 price target on this payments company's shares after the conclusion of the Senate inquiry into parts of the financial industry that were missed by the Royal Commission. According to the note, the broker notes that there are four recommendations that impact the buy now, pay later market. But none of these recommendations are expected to be an issue for the Afterpay platform, which should mean it is business as usual for the fast-growing company. Whilst it is a high risk option due to the premium that its shares trade on, I agree with Goldman that Afterpay Touch is a buy.
Webjet Limited (ASX: WEB)
A note out of UBS reveals that its analysts have retained their buy rating and lifted the price target on this online travel agent's shares to $21.00. According to the note, the broker was pleased with Webjet's strong organic growth, especially considering the market's concerns over a weak European market. The good news is that UBS remains confident that the company's growth can continue and appears to believe the WebBeds (B2B) segment will be a key driver of this. I agree with UBS and feel Webjet's shares are great value even after last week's stellar gain.
