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Top brokers name 3 ASX shares to buy next week

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:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Goldman Sachs, its analysts have retained their buy rating but lowered their price target on this gaming technology company’s shares to $28.50. While the broker acknowledges that there is uncertainty in regard to how long it will take for its land based segment to recover from the pandemic, it believes it is better placed than its rivals due to its market leading suite of games. It also notes that it has a strong balance sheet, giving it the option to pursue acquisitions. I agree with Goldman Sachs and would be a buyer of its shares with a long term view.

Sonic Healthcare Limited (ASX: SHL)

Analysts at Citi have retained their buy rating and $32.50 price target on this healthcare company’s shares. According to the note, the broker believes Sonic Healthcare has a lucrative opportunity in the U.S. with COVID-19 testing. Even if it only wins a small share of the multi-billion dollar market, it suspects it could give its revenue and earnings a major boost. I think Citi makes some good points and Sonic Healthcare could be worth a closer look.

Volpara Health Technologies Ltd (ASX: VHT)

A note out of Morgans reveals that its analysts have retained their add rating but cut the price target on this healthcare technology company’s shares to $1.68. The broker made a small reduction to its price target after factoring Volpara’s recent $37 million capital raising into the equation. The proceeds will be used for general working capital purposes and to fund potential future acquisition opportunities. Overall, the broker believes Volpara is well placed for growth over the coming years and thus holds firm with its positive rating. I agree with Morgans and feel Volpara is a good option for investors looking for small cap exposure.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Sonic Healthcare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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