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:
Altium Limited (ASX: ALU)
According to a note out of Ord Minnett, its analysts have retained their buy rating but trimmed the price target on this design software company's shares slightly to $32.50. The broker has reduced its forecasts for Altium in FY 2020 because of the coronavirus outbreak. But still expects the company to surpass its revenue target of US$200 million and deliver strong EBITDA growth. I agree with Ord Minnett on Altium and would be a buyer of its shares.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Citi reveals that its analysts have retained their buy rating and $68.75 price target on this banking giant's shares. According to the note, the broker doesn't expect APRA to follow the lead of the RBNZ by forcing the banks to suspend their dividends. It feels too many retirees depend on them for income. However, Citi does still expect Commonwealth Bank to cut its dividend to $3.65 per share in FY 2021. Despite this, it still believes its shares are trading at an attractive level and thus retains its buy rating. I agree with Citi and feel this forecast dividend yield of 6.1% makes it a great option for income investors.
Jumbo Interactive Ltd (ASX: JIN)
Analysts at Morgan Stanley have retained their overweight rating and $16.00 price target on this online lottery ticket seller's shares. This follows the release of a market update last week with its guidance for FY 2020. The broker believes that Jumbo's guidance is conservative and appears optimistic that store closures will lead to increasing usage of its online platform by lottery players. I think Morgan Stanley is spot on and its recent share price weakness could be a buying opportunity.
