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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Macquarie, its analysts have retained their outperform rating and $17.95 price target on this infant formula and fresh milk company's shares. This follows the release of an update at its annual general meeting which reiterated its guidance for FY 2021. While the broker notes that a2 Milk Company will require a huge second half and that there's still a lot of uncertainty in the daigou channel, it remains positive on the company's medium term growth prospects. The a2 Milk share price ended the week at $13.90.
Aristocrat Leisure Limited (ASX: ALL)
Analysts at Citi have retained their buy rating and lifted the price target on this gaming technology company's shares to $40.60. This follows the release of a full year result which was largely in line with expectations. Looking ahead, the broker believes the company is well-placed for growth and has upgraded its earnings estimates. It expects its earnings growth in FY 2021 to be driven by its Digital business and a recovery in the US market. The Aristocrat Leisure share price closed the week at $33.96.
EML Payments Ltd (ASX: EML)
A note out of UBS reveals that its analysts have commenced coverage on this payments company's shares with a buy rating and $5.00 price target. The broker believes EML Payments is well placed to benefit from the accelerating shift to a cashless society. It also sees a lot of value in the Prepaid Financial Services acquisition from earlier this year. It feels this has opened up the company to significant growth opportunities. The EML Payments share price last traded at $3.63.
