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:
Afterpay Touch Group Ltd (ASX: APT)
According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted the price target on this payments company's shares to $35.10. Its analysts were impressed with Afterpay Touch's performance in FY 2019 and were pleasantly surprised by its strong start to life in the UK market. Over 200,000 UK customers have been on-boarded in the first 15 weeks, which was significantly higher than Ord Minnett expected. In light of this, the broker has bumped up its sales estimates and its price target accordingly. Whilst it is admittedly a high risk option, I think it could prove to be a great long-term investment.
Appen Ltd (ASX: APX)
A note out of UBS reveals that its analysts have upgraded this language technology company's shares to a buy rating with a $30.00 price target. According to the note, the broker thought that Appen's performance in the first half was strong and appears confident that more of the same is coming in the second half and beyond thanks to the Figure Eight acquisition and positive tailwinds that are driving increasing demand for its services. I agree with UBS on Appen and think it is one of the best options in the tech sector.
NEXTDC Ltd (ASX: NXT)
Equity analysts at Macquarie have upgraded this data centre operator's shares to an outperform rating and lifted the price target on them to $7.75 following the release of its full year results. According to the note, NEXTDC delivered a result and guidance for FY 2020 that was largely in line with its expectations. In addition to this, the broker feels investors should look beyond its high level of short interest as it doesn't appear to believe the short thesis will play out. Whilst its shares are expensive, I agree with Macquarie that they could be a good long term option.