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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:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their buy rating and lifted the price target on this infant formula company’s shares to $19.20. The broker was pleased with a2 Milk Company’s performance in the first half and believes it will benefit indirectly from the coronavirus outbreak. The big question for Citi, though, is whether FY 2020 will actually benefit from sales being brought forward from FY 2021. This could potentially mean softer growth next year. I think a2 Milk Company would be a great long term option for investors and agree that it is a buy right now.

InvoCare Limited (ASX: IVC)

Analysts at Morgans have upgraded this funerals company’s shares to an add rating and lifted the price target on them to $15.87. According to the note, InvoCare delivered a stronger than expected result in FY 2019. It notes that industry trends are returning to normal and the company’s renovated sites are performing very strongly. This gives Morgans confidence in its growth outlook over the medium term. I think things are looking positive for InvoCare and it could be worth a closer look.

Rio Tinto Limited (ASX: RIO)

A note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed the price target on this mining giant’s shares slightly to $106.00. According to the note, Rio Tinto’s full year result was largely in line with its expectations. It appears confident there will be more of the same in the near future thanks to favourable iron ore prices. And while no special dividend was declared with its results, it expects management to revisit its capital management plans once the coronavirus outbreak eases. I agree with Macquarie and think Rio Tinto is a great option for investors looking for exposure to the resources sector.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended InvoCare Limited. 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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