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:
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Bank of Queensland Limited (ASX: BOQ)
According to a note out of Morgans, its analysts have upgraded this regional bank's shares to an add rating with a $7.20 price target. The broker made the move after Bank of Queensland delivered a full year result ahead of its expectations. This was driven by strong net interest income. Looking ahead, the broker notes that its forecasts are ahead of the consensus estimates. However, it feels these estimates are more than achievable. While I see more value in some of the big four banks, Bank of Queensland does look like a decent option.
Medibank Private Ltd (ASX: MPL)
A note out of Morgan Stanley reveals that its analysts have upgraded this private health insurer's shares to an overweight rating with an improved price target of $3.10. The broker made the move after lifting its earnings forecasts to account for lower than previously expected claims. In addition to this, the broker believes that Medibank is well-placed to achieve its policyholder growth targets in FY 2021. While I think the broker makes some good points, I still have concerns over affordability issues. Until they are resolved, I'm staying clear of the industry.
Telstra Corporation Ltd (ASX: TLS)
Analysts at UBS have retained their buy rating and $3.70 price target on this telco giant's shares. According to the note, the broker has lifted its dividend estimates in response to comments at its annual general meeting last week. It notes that the Telstra board has revealed that it is willing to adjust its dividend policy to maintain its 16 cents per share fully franked dividend. This will be done if it believes this dividend can be sustained beyond the NBN rollout. UBS appears confident this is possible. I agree with the broker and feel Telstra would be a great option for income investors.
