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:
REA Group Limited (ASX: REA)
A note out of the Macquarie equities desk reveals that its analysts have upgraded this property listings company's shares to an outperform rating with a trimmed price target of $90.00. According to the note, the broker expects a significant drop in listings through to July because of the coronavirus outbreak. However, it believes REA Group is well-positioned to return to growth once the crisis blows over. Combined with its recent share price pullback, Macquarie thinks REA Group's shares are in the buy zone. I agree with Macquarie and feel this pullback could be a good opportunity for investors with a long term view.
SEEK Limited (ASX: SEK)
Analysts at Morgans have upgraded this job listings company's shares to an add rating with a reduced price target of $20.55. According to the note, the broker has downgraded its earnings estimates again to account for the coronavirus impact. And while it believes that a prolonged downturn could lead to a capital raising being undertaken, it still sees a lot of value in SEEK's shares at the current level. I think Macquarie is spot on and SEEK could be a good long-term option once the market volatility eases.
Telstra Corporation Ltd (ASX: TLS)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and cut the price target on them slightly to $4.20. The broker likes Telstra due to the limited impact the coronavirus is having on its performance. It notes that the telco giant still has good visibility on its earnings and was able to recently reaffirm its guidance. The broker continues to expect Telstra to pay a 16 cents per share dividend in FY 2020 and FY 2021. I agree with Credit Suisse and feel that Telstra is a top option for investors in the current environment.
