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:
Life360 Inc. (ASX: 360)
According to a note out of Credit Suisse, its analysts have initiated coverage on this recently listed tech company with an outperform rating and $5.20 price target. Life360 is a family networking app which offers a location-based service designed primarily to allow friends or family members to share locations with each other. With 18 million monthly users, the broker believes the company's outlook is very positive and sees opportunities for its user base to be monetised. I think Credit Suisse makes some good points and Life360 could be worth watching.
Nanosonics Ltd (ASX: NAN)
A note out of UBS reveals that its analysts have initiated coverage on this infection control specialist's shares with a buy rating and $6.10 price target. According to the note, the broker believes the company's trophon EPR product has strong growth potential and expects its market share to grow materially over the next decade. In fact, by FY 2030 UBS believes the product will have captured a 45% share of its addressable market. Its analysts also see opportunities for the technology to be used across a wide-range of other infection prevention cases. I agree with UBS on Nanosonics and believe it is one of the best buy and hold options on the local market.
Pact Group Holdings Ltd (ASX: PGH)
Analysts at Deutsche Bank have retained their buy rating and $4.25 price target on this packaging company's shares after it announced the refinancing of its debt. According to the note, the broker believes this is a big positive as it has removed the risk of the company undertaking a heavily discounted equity raising. It also gives Pact Group the capacity to finish off its rationalisation activities and growth projects. Whilst it's not a share that I'm a big fan of, I think Pact Group could be worth a closer look after this development.
