Last week was another quiet one in respect to broker notes.
In light of this, I have picked out three recent broker buy recommendations that have stood out over the past few weeks.
Here's why brokers think investors should consider buying these ASX shares when the market reopens:
Megaport Ltd (ASX: MP1)
According to a note out of UBS, its analysts have retained their buy rating and lifted the price target on the shares of this provider of elasticity connectivity and network services to $11.55. UBS appears confident that Megaport's recent capital raising will be enough to fund its operations to breakeven. It also believes the funds will support its expansion in new and existing geographies. Another positive is that the broker sees Megaport as a big winner from the increasing amount of data that consumers and businesses are generating. I think UBS is on the money with this one and feel Megaport is a great long-term option.
Pushpay Holdings Ltd (ASX: PPH)
A note out of the Macquarie equities desk reveals that its analysts have upgraded this payments company's shares to an outperform rating and lifted the price target on them to NZ$4.61 (A$4.42). According to the note, Macquarie appears confident that its recent acquisition of Church Community Builder for US$87.5 million will be a success. It notes that the strategic rationale for the acquisition is sound and expects it to provide a big lift to its revenue from FY 2021. I agree with Macquarie on Pushpay and feel it is another great long term investment option.
Redbubble Ltd (ASX: RBL)
Analysts at Morgans have retained their add rating but cut their price target on this ecommerce company's shares to $2.10. This follows its disappointing update which revealed that a new competitor in the sticker market was negatively impacting its sales. Morgans believes the rival company is selling goods at a loss on the Amazon platform. Which shouldn't be sustainable over the long term. As a result, it believes the sell off has been an overreaction and is a buying opportunity for investors. I intend to wait for its performance to improve before considering an investment.
