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:
Bellamy's Australia Ltd (ASX: BAL)
According to a note out of Citi, its analysts have retained their buy rating but cut the price target on this infant formula company's shares to $9.75. Although Bellamy's first half results were notably weaker than expected, Citi believes that investors ought to be patient and think long-term. Its research shows that Bellamy's has significant brand awareness in China. Its analysts expect this and its increased marketing in the country to lead to strong sales growth once it receives its SAMR accreditation. I agree with Citi on Bellamy's and feel that it is well worth being patient and holding onto its shares for the long-term.
HUB24 Ltd (ASX: HUB)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating but reduced the price target on this investment platform company's shares to $14.60. According to the note, the broker was disappointed with HUB24's half year results but believes this was caused by management focusing on its long term opportunities rather than short term gains. Overall, it remains positive on HUB24 due to its belief that it is well-placed to benefit from a continued trend in inflows across the market towards independent platforms. This is expected to be led by a shift from advisers away from the vertically integrated models of the incumbent wealth managers. I think Goldman Sachs is spot on here and feel it could be worth seizing on its recent share price weakness.
Ramsay Health Care Limited (ASX: RHC)
Analysts at Macquarie have retained their outperform rating and lifted the price target on this private hospital operator's shares to $72.00 following the release of its half year results. According to the note, Ramsay delivered a profit result ahead of the broker's expectations. It appears pleased to see that its revenue growth in the core Australian market was ahead of system growth and expects its brownfield projects to underpin further growth next year. In addition to this, it is optimistic that its operations in the UK and France will benefit from favourable tariff outcomes. Whilst I thought Ramsay delivered a better than expected half, I'm still not ready to invest on valuation grounds.
