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:
Afterpay Ltd (ASX: APT)
According to a note out of Morgans, its analysts have retained their add rating but cut the price target on this payments company's shares to $33.11. Morgans was pleased with Afterpay's performance in the third quarter. It delivered a 97% increase in underlying sales to $2.6 billion. In addition to this, the broker feels that Afterpay's balance sheet is strong enough to see it through even the most negative potential scenarios following the pandemic. I agree with Morgans and would be a buyer of its shares with a long term view.
Coles Group Ltd (ASX: COL)
Analysts at Credit Suisse have retained their outperform rating and lifted the price target on its shares to $18.68. According to the note, the broker believes supermarket operator is well-placed to benefit from panic buying and more eating at home during the coronavirus pandemic. It prefers Coles to rival Woolworths Group Ltd (ASX: WOW), which it has a neutral rating and $39.92 price target on. I think Credit Suisse is spot on and Coles would be a top option for investors.
Transurban Group (ASX: TCL)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this toll road operator's shares to $15.21. This follows the release of a traffic update for the March quarter. Although the broker acknowledges that times are hard for its roads, it believes they will soon recover. It also suspects that lower fuel prices could be a boost for its roads when things return to normal. Overall, it believes its distribution will rebound quickly when conditions return to normal. I agree and feel Transurban would be a good option for patient income investors.
