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:
Corporate Travel Management Ltd (ASX: CTD)
According to a note out of UBS, its analysts have retained their buy rating but trimmed the price target on this corporate travel specialist's shares to $28.00. Corporate Travel Management fell short of the broker's expectations during the first half due to difficult trading conditions. It also notes that the coronavirus will have a one-off short term impact on its business. But despite this, it remains positive on its medium term growth prospects and continues to see value in its shares. Whilst I agree with UBS, I think there are better options in the travel sector.
Lovisa Holdings Ltd (ASX: LOV)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but trimmed the price target on this retailer's shares to $13.50. According to the note, the broker thought Lovisa's gross margin in the first half was disappointing. It notes that Lovisa has also warned about a potential short term impact from the coronavirus outbreak. Nevertheless, Macquarie continues to believe its long-term growth potential is strong thanks to expansion opportunities in the United States and Europe. I agree with Macquarie and feel Lovisa is a good option in the retail sector.
Nearmap Ltd (ASX: NEA)
Analysts at Morgan Stanley have retained their overweight rating and $2.30 price target on this aerial imagery technology and location data company's shares following its half year results. According to the note, Nearmap's results were in line with its expectations after being largely pre-released a few weeks ago. Overall, the broker remains positive on Nearmap's long term growth potential, but does want to see its churn levels stabilise. Until that happens, it appears to believe that the market may remain wary. I agree with Morgan Stanley and would be a buyer of its shares. Though, I would only recommend doing so if you plan to make a patient buy and hold investment.
