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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:

Afterpay Ltd (ASX: APT)

According to a note out of the Macquarie equities desk, its analysts have initiated coverage on this payments company’s shares with an outperform rating and $38.00 price target. The broker believes the company has an enormous opportunity in the United States market. Macquarie estimates that this market is upwards of 20 times bigger than the Australian market. In addition to this, although competition is increasing, it appears to believe its first-mover advantage will help drive its growth and protect its margins. I agree with Macquarie and would be a buyer of its shares.

IMF Bentham Ltd (ASX: IMF)

A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and lifted the price target on this litigation funding company’s shares to $5.10. According to the note, the broker believes IMF Bentham is on the brink of a transformation that will see its earnings shift to a more stable combination of management fees, performance fees, and profit sharing. In addition to this, it likes IMF Bentham due to its exposure to the uncorrelated returns in litigation funding. These are not determined by economic growth, changes in interest rates, or performance in the equity or bond markets. I think Goldman Sachs makes some very interesting points and IMF Bentham could be worth a closer look.

Nearmap Ltd (ASX: NEA)

Analysts at Citi have retained their buy rating but trimmed the price target on this aerial imagery technology and location data company’s shares to $4.05. According to the note, the broker doesn’t appear concerned by Nearmap’s growing competition and increasing investment. It believes the company’s recent guidance was strong and expects its investment in marketing and product development to underpin strong sales growth over the medium term. I think Citi is spot on and would be a buyer of Nearmap’s shares.

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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. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. 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.