Motley Fool Australia

Top brokers name 3 ASX shares to buy next week

finger pressing red button on keyboard labelled Buy
Image Source: Getty Images

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:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of UBS, its analysts have retained their buy rating and lifted their price target on this infant formula company’s shares to NZ$16.00 (A$14.88). The broker expects the company’s daigou sales to recover over the next couple of years. This is expected to be supported by market share gains in the lucrative China market. The a2 Milk share price ended the week at $9.31.

ARB Corporation Limited (ASX: ARB)

Analysts at Citi have retained their buy rating and lifted the price target on this 4×4 accessories company’s shares to $45.15. According to the note, the broker sees positives from its acquisition of the UK-based Auto Styling Truckman Group for $40 million. Citi notes that the deal gives ARB access to a European market which currently only contributes a very small portion of its overall revenue. The broker has upgraded its earnings estimates to reflect the acquisition and lifted its price target accordingly. The ARB share price was fetching $33.23 at the end of play on Friday.

Northern Star Resources Ltd (ASX: NST)

Another note out of Citi reveals that its analysts have retained their buy rating but trimmed the price target on this gold miner’s shares to $13.50. The broker believes that the gold price has now peaked and has downgraded its forecasts for the precious metal accordingly. And while it suspects that gold miners will be out of favour with investors, it still sees value in Northern Star’s shares. This is thanks to its strong cash flow generation and upcoming developments. The Northern Star share price was trading at $9.56 at Friday’s close.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended ARB Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Related Articles…