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:
G8 Education Ltd (ASX: GEM)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $3.45 price target on this childcare centre operator's shares after it provided a trading update at its annual general meeting. At the meeting the company reaffirmed its earnings and occupancy growth guidance for the full year but warned that it would be weighted to the second half. Macquarie believes this is consistent with industry feedback and expects the company to achieve its guidance. I'm not as confident on G8 Education as Macquarie is, so I intend to stay clear of its shares for the time being.
Santos Ltd (ASX: STO)
Analysts at Ord Minnett have retained their buy rating and $7.50 price target on this leading energy producer's shares after the release of its quarterly update. According to the note, Santos' production was in line with expectations during the March quarter. Overall, the broker continues to be positive on the company due to its production growth and strong free cash flow generation. I agree with Ord Minnett and think Santos is one of the better options in the energy sector.
Qantas Airways Limited (ASX: QAN)
According to a note out of Goldman Sachs, it has retained its conviction buy rating and $6.93 price target on this airline operator's shares following the release of the Bureau of Infrastructure, Transport and Regional Economics (BITRE) domestic travel data for the month of February. Although the data revealed a slight decline in domestic passenger movements and seat utilisation, Goldman believes this is the result of an intentional contraction in available capacity by domestic carriers and the reduction of fare discounts to improve yields. I agree with Goldman and feel Qantas would be a good option for investors.
