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Top brokers name 3 ASX shares to buy next week

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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 lifted their price target on this payments company’s shares to $115.00. This follows the announcement of a partnership with Westpac Banking Corp (ASX: WBC) which will see Afterpay offer savings accounts and cash flow tools in 2021. The broker believes that this could generate valuable data that gives the company opportunities to develop innovative products. Outside this, based on recent app downloads, Morgan Stanley has upgraded its estimates to reflect strong uptake in the United States. It estimates that Afterpay had 11.3 million total active customers at the end of September. I agree with the broker on this one and feel Afterpay would be a great long term option.

BHP Group Ltd (ASX: BHP)

Analysts at Ord Minnett have retained their buy rating but trimmed their price target on this mining giant’s shares slightly to $43.00. This follows the release of a quarterly update which revealed better than expected iron ore production and shipments. Ord Minnett appears confident that BHP is well-placed to deliver a strong profit result in FY 2021, with more generous dividend payments for shareholders. It estimates this equates to a fully franked yield of ~6.5% over the next 12 months. I think Ord Minnett is spot on and BHP would be a top option for investors looking for income or exposure to the resources sector.

Healius Ltd (ASX: HLS)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this healthcare company’s shares to $4.10. Macquarie was impressed with Healius’ first quarter update, which was boosted by strong demand for COVID-19 testing. The broker notes that this was supported by other parts of the business, which performed positively. Looking ahead, Macquarie believes Healius has plenty of growth opportunities and remains positive on its outlook. While not my top pick in the sector, I do think it could be a good option for investors.

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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 AFTERPAY T FPO. 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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