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 $36.50. The broker appears to have been very pleased with Afterpay's recent update and particularly its strong growth across the ANZ, UK, and US markets. It appears confident there will be more of the same in the future, especially given new merchant signings such as eBay Australia. I agree with Ord Minnett and would be a buyer of Afterpay's shares. Though, it may be worth waiting to see how its AML/CTF audit goes before hitting the buy button.
Appen Ltd (ASX: APX)
Analysts at UBS have retained their buy rating and $30.00 price target on this language technology company's shares. According to the note, the broker was impressed with its earnings guidance upgrade and notes that its Relevance business is growing at a very strong rate. It suspects that the market may re-rate its shares higher upon the release of its full year results early next year. I think UBS is spot on with Appen and would class its shares as a buy.
Prospa Group Ltd (ASX: PGL)
A note out of the Macquarie equities desk reveals that its analysts have retained their buy rating but lowered the price target on this online lender's shares to $3.00. According to the note, the broker is sticking with Prospa after its surprise downgrade and believes its loan origination guidance is conservative. Though, it acknowledges that its guidance downgrade last week will have hurt investor sentiment and could hold down its shares. Especially given the short time the company has been listed on the share market. I think Macquarie makes some great points. Though, I intend to hold out and see how it fares over the coming months before making a decision.
