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:
Amcor PLC (ASX: AMC)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and lifted the price target on this packaging company's shares to $18.50. The broker believes that Amcor is will placed to consolidate its position as the global leader in packaging following the completion of its acquisition of Bemis. In FY 2020 the broker has forecast earnings per share growth of 13%, but believes there is upside risk to this forecast from synergies. In addition to this, Morgan Stanley likes the company due to the quality of its business and its defensive earnings. Whilst it wouldn't be my first pick, I do agree that it could be worth considering after the Bemis acquisition.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at UBS have upgraded this pizza chain operator's shares to a buy rating from neutral and held firm with their $48.50 price target. According to the note, the broker believes that the recent underperformance of its shares is a buying opportunity. Especially given how a weaker than expected full year result appears to have been factored in by the market. I agree with UBS and think Domino's would be a great long term investment.
REA Group Limited (ASX: REA)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $105.00 price target on this property listings company's shares following its full year results release. In FY 2019 REA Group posted an 8% lift in sales and a 6% increase in net profit after tax. Whilst this fell short of Goldman's forecasts, the broker remains positive on the company's long term prospects. I agree with Goldman Sachs on REA Group and believe it is one of the best buy and hold options on the local market.
