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:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
According to a note out of Credit Suisse, its analysts have retained their outperform rating and $29.50 price target on this banking giant’s shares. Credit Suisse notes that COVID-19 loan deferrals are continuing to decline in the sector. This was certainly the case at ANZ, with the bank seeing its total loan deferral balance more than halve during the month of February. This appears to reinforce the broker’s view that the worst is over and the outlook for the sector is improving greatly. The ANZ share price ended the week at $28.24.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at Ord Minnett have retained their buy rating and $30.00 price target on this iron ore producer’s shares. This follows the company’s event discussing Fortescue Future Industries. While the full details of the clean energy-focused business have not been revealed, the broker appears confident that it won’t negatively impact shareholder value. In light of this, it remains very positive on the company, particularly with the sky high iron ore price and a recent pullback in its share price. The Fortescue share price is currently trading at $20.25.
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted their price target on this cloud-based business and accounting platform provider’s shares to $140.00. The broker has been looking at its recent acquisitions of Planday and Tickstar and appears to believe that they will be supportive of growth in the future. In addition to this, it feels the risk/reward on offer with its shares is attractive after recent share price weakness. The Xero share price was trading at $130.87 at the end of the week.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.