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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of UBS, its analysts have retained their buy rating but trimmed the price target on this infant formula and fresh milk company's shares slightly to NZ$16.10 (~A$15.00). The broker made a slight adjustment to its price target after factoring in data that showed lower infant milk formula export volumes out of Christchurch in September. Despite this, it still expects a positive update at the company's annual general meeting next month and remains bullish on its long-term prospects. I agree with UBS and would also be a buyer of its shares.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at Goldman Sachs have retained their buy rating and lifted the price target on this iron ore producer's shares to $9.70. According to the note, Goldman was pleased with its first quarter update. Fortescue's shipments were in line with expectations, whereas its costs were lower than forecast. Overall, despite a strong share price gain this year, it still sees a lot of value in its shares. I think Goldman is spot on and feel Fortescue would be a good option if iron ore prices remain favourable.
Treasury Wine Estates Ltd (ASX: TWE)
Another note out of UBS reveals that its analysts have retained their buy rating and $20.50 price target on this wine company's shares. According to the note, the broker has been looking into industry data and believes Treasury Wine may have lost a bit of its market share in the United States. Whilst this has led to a slight downgrade in its forecasts, the broker remains positive on the company. This is due largely to its attractive valuation and improving cash flow. I think UBS has made a good call on this one.
