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:
Afterpay Touch Group Ltd (ASX: APT)
According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating and lifted the price target on this payment company's shares by 29% to $27.00. Goldman made the move after revising its valuation approach and upgrading its estimates following a review of the latest indicators in the U.S. market. This includes a record month of U.S. app downloads, growing website visit numbers, and an increase in U.S. retailers on its platform. In light of this, Goldman has upgraded its customer number estimates significantly. It expects 1.85 million customers in the U.S. at the end of FY 2019, compared to a forecast of 1.4 million previously. And then by FY 2021, it has estimated a massive 6.6 million U.S. customers. I agree with Goldman and think it would be a great long-term investment.
BHP Group Ltd (ASX: BHP)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $41.00 price target on this mining giant's shares. The broker has held firm with its rating after BHP revealed that Tropical Cyclone Veronica has caused floods in Port Hedland which have impacted shipments. Whilst this is a small negative, it is expected to be offset by favourable iron ore price movements due to supply disruptions. I think Macquarie is spot on with its recommendation and feel it would be a great option for investors looking for exposure to the resources sector.
Flight Centre Travel Group Ltd (ASX: FLT)
Analysts at Morgan Stanley have retained their overweight rating and $51.00 price target on this travel agent's shares. According to the note, the broker believes the selling of its shares due to concerns over its Australian leisure business has been overdone. Especially given the impressive performance of its corporate business. All in all, Morgan Stanley feels its shares are cheap and that now is an opportune time to invest. Whilst it isn't my first pick in the industry, I agree that its shares do look great value at the current level.
