Last week saw a 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 Macquarie, its analysts have retained their outperform rating but cut the price target on this artificial intelligence services company's shares to $27.00. The broker notes that the Appen share price has pulled back materially over the last few months due COVID headwinds. It sees this as a buying opportunity and expects these headwinds to ease in 2021. Though, it does note that foreign exchange headwinds are unlikely to be going away any time soon. Hence why the broker has reduced its price target. The Appen share price ended the week at $22.70.
NEXTDC Ltd (ASX: NXT)
Analysts at Morgans have retained their add rating and $13.89 price target on this data centre operator's shares. According to the note, the broker believes that NEXTDC is on course to at least achieve its guidance in FY 2021 and expects it to be reiterated at its half year results. Looking further ahead, Morgans believes NEXTDC's outlook is very positive thanks to the structural shift to the cloud. The NEXTDC share price last traded at $11.81.
ResMed Inc. (ASX: RMD)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating but trimmed the price target on this medical device company's shares to $29.50. According to the note, the broker is expecting ResMed to report strong mask sales in FY 2021 due to COVID-19 related re-supplies. In addition to this, the broker believes ResMed is well-placed to benefit from the shift to home healthcare thanks to its high level of investment in out of hospital solutions in recent years. The ResMed share price ended the week at $27.90.
