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)
Analysts at Morgan Stanley have commenced coverage on this electronic design software company's shares with an overweight rating and $40.00 price target. Morgan Stanley believes that now would be a good time to invest in the market darling. Especially given how its products are likely to be in even more demand with users due to increased remote working. Altium 365 is a cloud-based offering which allows users to collaborate from anywhere in the world. Combined with its exposure to the proliferation of connected devices, Morgan Stanley appears bullish on its outlook. I agree and feel Altium is one of the best options on the market right now.
Origin Energy Ltd (ASX: ORG)
According to a note out of Goldman Sachs, it has retained its conviction buy rating and trimmed the price target on this energy company's shares to $8.45. Goldman likes Origin due to its strong balance sheet and lean operations. And although the company is facing near term headwinds, it believes it is well-positioned to navigate this period of volatility. The broker also believes that its dividend can be maintained at 30 cents per share for the foreseeable future. This equates to a 5.7% yield based on its last close price. I think that Goldman Sachs makes some great points and Origin could be worth a closer look.
Woolworths Group Ltd (ASX: WOW)
A note out of UBS reveals that its analysts have retained their buy rating and $39.70 price target on this retail conglomerate's shares. Although Woolworths delivered strong sales growth in the third quarter, it was a touch below the broker's expectations. Despite this, it still sees value in its shares at the current level and feels investors should overlook a couple of quarters of higher operating costs from coronavirus initiatives. While not my favourite in the sector, I still think Woolworths' shares are good value.
