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 Morgan Stanley, its analysts have retained their overweight rating and $21.50 price target on this travel booking company's shares. The broker notes that one of its rivals is forecasting a quicker than expected recovery in the corporate travel market. This bodes well for Corporate Travel Management and the broker believes its pathway to profitability is much clearer than other ASX travel booking shares. The Corporate Travel Management share price ended the week at $16.74, which implies potential upside of over 24%.
Nanosonics Ltd (ASX: NAN)
Analysts at UBS have retained their buy rating and $7.20 price target on this infection control company's shares following the release of its trading update. The broker notes that Nanosonics' has had a better start to FY 2021 than it was expecting, with strong quarter on quarter growth in consumables. And while the broker expects its first half result to be soft, it remains positive on its long term prospects. The broker believes Nanosonics is an example of a high-quality structural growth story, particularly in a post-COVID world which is likely to have a greater focus on infection prevention. This price target implies potential upside of almost 26%.
National Australia Bank Ltd (ASX: NAB)
A note out of Citi reveals that its analysts have retained their buy rating and $23.50 price target on this banking giant's shares following its full year results. Although NAB fell short of its estimates in FY 2020, it notes that this was due to an increase in its loan loss provisions. It feels these have been brought forward from the new financial year and has thus reduced its loan loss forecasts for FY 2021. In addition to this, it likes the bank above the rest of the big four due to its revenue growth prospects and strong cost control. The NAB share price was changing hands for $19.57 on Friday afternoon. This means there's potential upside of 20% (excluding dividends) based on this price target.
