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:
Flight Centre Travel Group Ltd (ASX: FLT)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating but trimmed the price target on this travel agent’s shares to $43.00. The broker reduced its price target after Flight Centre’s annual general meeting revealed weaker than expected profitability. And although this has led to a downgrade tp the broker’s estimates, it still sees value in its shares at this level. While I agree that its shares look good value, I would prefer to invest when trading conditions improve.
National Australia Bank Ltd (ASX: NAB)
A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and lifted the price target on this banking giant’s shares to $30.71. According to the note, NAB continues to be Goldman’s preferred pick in the sector. It believes its performance in FY 2019 was the strongest of its peers and expects the trend to continue. This is due to its overweight exposure to SME lending. The broker expects this to support volume growth and its net interest margin. I agree with Goldman on NAB and would also class its shares as a buy.
Zip Co Ltd (ASX: Z1P)
Analysts at UBS have upgraded this payments company’s shares from a sell rating to a buy rating with a $4.80 price target. According to the note, the broker made the move following a sharp pullback in its share price and news of a strategic agreement with Amazon. That deal means Zip Co is now a payment method on the ecommerce company’s Australian website. I think UBS is spot on and would agree that Zip Co is a buy at these levels.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited. The Motley Fool Australia owns shares of National Australia Bank 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.