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:
Corporate Travel Management Ltd (ASX: CTD)
According to a note out of Morgans, its analysts have upgraded this corporate travel company's shares to an add rating with a $12.85 price target. Morgans made the move partly on valuation grounds after a sizeable pullback in the Corporate Travel Management share price. It notes that this has left its shares trading at a big discount to its valuation. Another positive is its belief that corporate travel demand has been stronger than expected recently. This could mean it surprises to the upside in FY 2021. While I think Morgans makes some good points, I'm staying clear of the travel sector until the pandemic passes.
CSL Limited (ASX: CSL)
Analysts at UBS have retained their buy rating but cut the price target on this biotech giant's shares to $320.00. According to the note, the broker has been looking at the performance of its competitors and notes positive results during the June quarter. And while the outlook on plasma collections remains tough, it is optimistic that other parts of the business will offset this weakness. As a result, it still expects earnings growth in FY 2021. I agree with UBS and would be a buyer of CSL's shares.
Qantas Airways Limited (ASX: QAN)
Another note out of UBS reveals that its analysts have retained their buy rating and $4.60 price target on this airline operator's shares. This follows the release of Virgin Australia's business update last week. It sees the sweeping changes that Virgin Australia is making as a positive for Qantas and could lead to market share gains in the future. While I do think the Qantas share price is good value, there are too many uncertainties in the travel market right now to give me enough confidence to invest.
