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 Morgan Stanley, its analysts have upgraded this payments company's shares to an overweight rating and lifted the price target on them to $101.00. Morgan Stanley has been impressed with Afterpay's growth and its better than expected credit quality. It expects more of the same in the near term and is forecasting revenue increasing at a compound annual growth rate of 60% through to FY 2022 with a stable net transaction margin of ~2%. This is expected to be underpinned by its in-store rollout in the U.S. and its expansion into China. I agree with Morgan Stanley and believe Afterpay would be a quality long term investment option.
Breville Group Ltd (ASX: BRG)
Analysts at Morgans have retained their add rating and $27.00 price target on this appliance manufacturer's shares. According to the note, the broker believes Breville is well-placed for growth thanks to its international expansion, more eating at home because of the pandemic, and growing demand for coffee machines. I think Morgans makes some good points and Breville could be a good buy and hold option.
Crown Resorts Ltd (ASX: CWN)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating but trimmed the price target on this casino and resorts operator's shares to $10.80. The broker has downgraded its earnings estimates to reflect recent lockdowns in Melbourne. However, it believes investors should look beyond this short term pain and focus on its positive long term outlook. While I agree that it has a positive longer term outlook, I would keep my powder dry until the pandemic passes.
