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:
Adore Beauty Group Ltd (ASX: ABY)
According to a note out of UBS, its analysts have upgraded this online beauty retailer's shares to a buy rating with a $6.20 price target. The broker made the move following the release of a strong half year result by Adore Beauty last week. UBS was pleased with its gross margin expansion, which was driven by strong customer growth and retention. Looking ahead, while it acknowledges that the company has benefited greatly from the shift online during the pandemic, it believes it remains well positioned for growth even when COVID passes. The Adore Beauty share price ended the week at $5.40.
Goodman Group (ASX: GMG)
A note out of Credit Suisse reveals that its analysts have upgraded this integrated property company's shares to an outperform rating with a price target of $19.62. This broker made the move in response to the release of Goodman's half year results last week. It was pleased with its stronger than expected performance. And while it suspected that the company might upgrade its guidance, the upgrade was larger than it forecast. The Goodman share price was fetching $16.56 at the end of the week.
Qantas Airways Limited (ASX: QAN)
Analysts at Morgan Stanley have retained their overweight rating but trimmed their price target on this airline operator's shares to $5.90. According to the note, Qantas posted a large half year loss as expected. And while it is expecting a sizeable full year loss as well, it believes Qantas will return to profit next year. In addition to this, it believes the company will come out of the other end of the pandemic in a stronger position. The Qantas share price ended the week at $5.00.
