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:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and $11.00 price target on this iron ore producer's shares following its quarterly update. Macquarie was pleased to see Fortescue outperform its expectations during the June quarter and provide stronger than expected guidance for FY 2020. In light of this, the broker believes there's a chance that Fortescue will reward shareholders with a generous final dividend next month. Whilst I think Fortescue is a great option in the resources sector, it is worth remembering that it is highly dependent on iron ore prices remaining at elevated levels. If you're confident they will, then I would consider it a buy.
Megaport Ltd (ASX: MP1)
A note out of Morgans reveals that its analysts have retained their add rating and lifted the price target on this elasticity connectivity and network services provider's shares to $8.80. According to the note, the broker was pleased with Megaport's performance in the last quarter and noted that its sales momentum appears to have accelerated. In light of this, it has upgraded its long term estimates materially and its price target to reflect this. I agree with Morgans on Megaport and feel it could be a great long-term investment.
National Australia Bank Ltd (ASX: NAB)
Analysts at Citi have retained their buy rating and $29.50 price target on this banking giant's shares. According to the note, the broker believes the appointment of Ross McEwan as its chief executive officer and managing director is a good one. Further, it thinks that the combination of McEwan and chairman Phil Chronican is as strong and experienced as any in the country. I think Citi is spot on with NAB and would also class its shares as a buy.
