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:
IDP Education Ltd (ASX: IEL)
According to a note out of Morgans, its analysts have upgraded this language testing and student placement company's shares to an add rating with an improved price target of $25.09. The broker believes an effective COVID-19 vaccine could lead to international borders opening quicker than expected. This would be a big boost to IDP Education's business. The broker also believes the company will be in a significantly better market position once trading conditions return to normal. The IDP Education share price ended the week at $23.53.
REA Group Limited (ASX: REA)
Analysts at Morgan Stanley have retained their overweight rating and $150.00 price target on this property listings company's shares. According to the note, the broker believes that REA Group is well-placed to deliver significantly better than expected operating leverage in the near future. Particularly given the cyclical recovery in listing volumes and an additional boost from people moving for working from home reasons. The REA Group share price last traded at $138.17.
Telstra Corporation Ltd (ASX: TLS)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating and $3.85 price target on this telco giant's shares. This follows the announcement of a plan to split the company into three separate entities. It was also pleased with management's commentary around its mobile business and expects postpaid ARPU growth in the second half. In addition to this, Credit Suisse is forecasting a 16 cents per share fully franked dividend in FY 2021. The Telstra share price ended the week at $3.13.
