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 retained their overweight rating and $101.00 price target on this buy now pay later provider's shares. Morgan Stanley notes that Afterpay has announced an agreement with Apple Pay and Google Pay for in-store payments in the United States market. The broker believes this could accelerate adoption and protect its first mover advantage in the rapidly growing buy now pay later market. I think Morgan Stanley is spot on and feel Afterpay could be a great buy and hold investment.
Altium Limited (ASX: ALU)
Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $40.00 price target on this electronic design software company's shares. This follows the release of Altium's FY 2020 sales update. While Altium's sales fell short of its original target of US$200 million, they were ahead of the broker's expectations. And while the broker believes that the market's margin expectations are too optimistic given the tough finish to the year, it remains upbeat on its long term growth prospects. I agree with Morgan Stanley on this one as well and would buy Altium shares.
Beach Energy Ltd (ASX: BPT)
Analysts at Morgans have upgraded this energy producer's shares to an add rating with a $1.66 price target. According to the note, the broker believes recent weakness in the Beach share price has created a buying opportunity for investors. In addition to this, it appears optimistic on its long term prospects and is expecting a positive five-year outlook released with its full year results. While I think Morgans makes some good points, I would suggest investors wait for demand for oil to improve before considering an investment.
