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:
Helloworld Travel Ltd (ASX: HLO)
According to a note out of Ord Minnett, its analysts have retained their buy rating but trimmed the price target on this travel company’s shares to $6.21 following the release of its guidance for FY 2020. Last week Helloworld revealed that in FY 2020 it expects EBITDA to be in the range $83 million to $87 million. This will be an increase of approximately 7.5% to 12.5% year on year. The broker was pleased with this and the fact that it has now removed a lot of uncertainty after it elected to provide no guidance in August with its results. I think Ord Minnett is spot on with this one and would be a buyer of its shares.
OceanaGold Corp (ASX: OGC)
Analysts at Credit Suisse have upgraded this gold miner’s shares to an outperform rating with a $4.25 price target. According to the note, the broker made the move on valuation grounds after its shares underperformed due to issues in the Philippines. In addition to this, the broker is positive on its Haile operation and its medium term targets. Depending on how things turn out in the Philippine courts, I think OceanaGold could be a good option for investors looking for exposure to gold.
Qantas Airways Limited (ASX: QAN)
A note out of Morgan Stanley reveals that its analysts have upgraded this airline’s shares to an overweight rating with an improved price target of $7.00. According to the note, the broker is confident that there is limited near term impact from the recent volatility in the oil price due to its fuel hedging policy. Furthermore, Morgan Stanley has been impressed with its Loyalty growth and has factored this into its valuation. I agree with the broker on Qantas and would also class its shares as a buy.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Helloworld Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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