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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and lifted the price target on this infant formula and fresh milk company's shares to $16.10. Macquarie made the move after looking deeper into the company's opportunity in the fresh milk market in the United States. Its analysts note that a2 Milk Company is growing its market share in the country and has forecast a 2% share over a 10-year period. I agree with Macquarie on a2 Milk Company and would also class its shares as a buy.
Accent Group Ltd (ASX: AX1)
Analysts at Morgans have upgraded this retailer's shares to an add rating from hold with a $1.51 price target. According to the note, the broker made the move on valuation grounds after a recent period of weakness for the Accent Group share price. While Morgans does have a few concerns over the emergence of JD Sports in Australia and its limited store network growth opportunities, it sees a lot of value in its shares at this level. I think Morgans is spot on and feel Accent Group would be a great option.
Caltex Australia Limited (ASX: CTX)
A note out of Goldman Sachs reveals that its analysts have upgraded this fuel retailer's shares to a buy rating with a trimmed price target of $29.00. According to the note, Caltex's recent update was worse than it expected, but it expects the refiner margin impacts to recover in the second half and in FY 2020 and believes its capital structure is sustainable. In light of this, the broker expects the company's earnings to rebound strongly in FY 2020. Whilst I thought the its update was quite shocking, the selloff does appear to have left its shares trading at an attractive level.
