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:
Appen Ltd (ASX: APX)
According to a note out of UBS, its analysts have retained their buy rating and $44.00 price target on this artificial intelligence services company's shares. This is despite Appen downgrading its FY 2020 earnings guidance last week due to COVID headwinds. UBS believes investors should look beyond this short term weakness and focus on its long term opportunity. The broker is expecting a rebound in its performance in FY 2021 when these headwinds ease. The Appen share price ended the week at $25.44.
Australian Pharmaceutical Industries Ltd (ASX: API)
A note out of the Macquarie equities desk reveals that its analysts have initiated coverage on this pharmacy chain operator and distributor's shares with an outperform rating and $1.47 price target. The broker believes the Priceline pharmacy owner is well positioned for growth thanks to a number of favourable industry trends. It also notes that it has exposure to popular and high margin laser clinic services. The Australian Pharmaceutical Industries share price closed at $1.29 on Friday.
Healius Ltd (ASX: HLS)
Analysts at Credit Suisse have retained their outperform rating and lifted the price target on this healthcare company's shares to $4.30. The broker appears to have been pleased with Healius' trading update last week which revealed a strong performance across the business. Particularly in respect to COVID testing. Credit Suisse has also upgraded its earnings forecasts for the medium term to reflect the company's $200 million on market share buyback and its cost cutting plans. The Healius share price was fetching $3.90 at Friday's close.
