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:
Coles Group Ltd (ASX: COL)
According to a note out of Citi, its analysts have retained their buy rating and $13.40 price target on this supermarket giant's shares after the release of its third quarter sales update. Coles reported total Supermarket and Liquor sales growth of 3.3% to $8,007 million in the third quarter, which was ahead of the broker's expectations. In addition to this, the broker notes positive underlying trends including increasing average basket size and transaction growth. I agree with Citi and feel Coles would be a great option for investors next week.
JB Hi-Fi Limited (ASX: JBH)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $28.00 price target on this retailer's shares following the release of its latest sales update. JB Hi-Fi posted solid sales growth across all its business in the third quarter, leading to management reaffirming its FY 2019 guidance. According to the note, the broker appeared to be impressed with its quarter and the way the company continues to deliver growth in a tough consumer environment. Whilst I was pleased with its update, I feel its shares are fully valued now after a strong run in 2019.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at UBS have retained their buy rating and $19.00 price target on this wine company's shares after it reaffirmed its guidance for EBITS growth of 25% in FY 2019 and between 15% to 20% in FY 2020. According to the note, the broker notes that consistent positive momentum has been sustained in Asia, despite what Chinese wine export data might be saying. Furthermore, UBS appears pleased that the 2019 vintage in Australia is of a high quality, with solid luxury intake growth. I agree with UBS on Treasury Wine Estates and feel it could be a very good buy and hold option.
