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Top brokers name 3 ASX shares to buy next week

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:

Adairs Ltd (ASX: ADH)

According to a note out of UBS, its analysts have retained their buy rating and lifted the price target on this retailer’s shares to $2.60. UBS appears happy with the company’s acquisition of online homewares retailer Mocka. It notes that Mocka is capital light and profitable. The deal is expected to be 10% accretive to earnings for Adairs. I think UBS is spot on and feel Adairs is worth considering even after its strong gain last week.

Afterpay Limited (ASX: APT) 

Analysts at Goldman Sachs have retained their conviction buy rating and $42.90 price target on this payments company’s shares. The broker appears to have been pleased with its performance in November and over the Black Friday and Cyber Monday sales events. Afterpay reported a 160% increase in underlying sales in November and revealed that it has now surpassed 3 million customers in the United States and 500,000 in the United Kingdom. This lifted total customer numbers to 6.6 million. I agree with Goldman on Afterpay and think it could be a great option for investors with a higher tolerance for risk.

CSL Limited (ASX: CSL)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $300 price target following its R&D event. According to the note, the broker likes CSL due to the positive outlook for immunoglobulins and notes that CSL has a number of promising drugs in late-stage development. It believes these have the potential to support its medium-term growth. I agree with Macquarie and feel CSL is a great buy and hold option for investors.

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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 AFTERPAY T FPO and CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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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