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:
Flight Centre Travel Group Ltd (ASX: FLT)
According to a note out of Morgans, its analysts have upgraded this travel agent's shares to an add rating with a reduced price target of $13.00. Although the broker expects Flight Centre to record heavy losses this year and in FY 2021, it is confident it has raised enough capital to see it through the coronavirus crisis. In addition to this, based on its estimates for FY 2022, Morgans feels its shares are trading at an attractive level for patient investors. Although I agree that Flight Centre looks good value, I would prefer to wait and see how things develop in the travel market in the coming months.
QBE Insurance Group Ltd (ASX: QBE)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating and $12.00 price target on this insurance giant's shares. According to the note, the broker believes QBE is well-positioned for rate increases in most areas of the business. In addition to this, it suspects that the current environment could lead to a lower level of claims during the June quarter. I'm not a big fan of insurance companies, but I think Credit Suisse makes some very good points with QBE.
Webjet Limited (ASX: WEB)
Analysts at UBS have retained their buy rating and cut the price target on this online travel agent's shares to $3.75. According to the note, while Webjet's recent capital raising was highly dilutive, it has de-risked its balance sheet. So much so, the broker estimates that it has enough liquidity to cover its operations for over 12 months without generating revenue. UBS also expects Webjet to come out of the crisis in a stronger market position. As with Flight Centre, I intend to wait for signs that the travel market is returning to normal before jumping in.
