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:
Aristocrat Leisure Limited (ASX: ALL)
According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted the price target on this gaming technology company's shares to $33.25 ahead of its half year results release next week. The broker likes Aristocrat Leisure due to its strong recurring revenues and believes it is gaining market share in the lucrative North American market. In addition to this, the broker notes that the company has a number of opportunities that could underpin its future growth. I agree with Ord Minnett and feel it would be a great investment option.
REA Group Limited (ASX: REA)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $93.50 price target on this property listings company's shares following its third quarter update. According to the note, the broker was pleased with REA Group's performance in the third quarter. And although it suspects that the fourth quarter will be soft, it remains optimistic on the company's growth prospects in FY 2020. I'm a big fan of REA Group and would have to agree with Macquarie on this recommendation.
Reliance Worldwide Corporation Ltd (ASX: RWC)
Another note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but trimmed the price target on this plumbing parts company's shares to $5.90. According to the note, the broker was surprised by the company's earnings downgrade, but feels that the sell off of its shares was overdone and has created a buying opportunity for investors. I agree with Macquarie. Whilst the downgrade was disappointing, I think the selloff has left its shares trading at a good price for a long term investment.
