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:
Megaport Ltd (ASX: MP1)
According to a note out of UBS, its analysts have retained their buy rating and lifted their price target on this elastic interconnection services provider's shares to $17.10. This follows the release of its third quarter update. Although Megaport added fewer new ports than the broker was expecting, it remains positive on the company thanks to its exposure to the shift to the cloud. UBS is expecting Megaport to more than double its revenue between FY 2021 and FY 2023. The Megaport share price ended the week at $13.51.
Nuix Ltd (ASX: NXL)
Analysts at Morgan Stanley have retained their overweight rating but cut the price target on this investigative analytics and intelligence software provider's shares to $7.50. According to the note, the broker was obviously disappointed to see the company downgrade its guidance due to a reduction in near term usage and a shift in its sales mix. However, it is holding firm with its overweight rating as it believes the global forensic and investigative software market is a structural growth story and Nuix is well-placed within it. The Nuix share price was fetching $4.61 at the end of the week.
Temple & Webster Group Ltd (ASX: TPW)
Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted their price target on this online furniture and homewares retailer's shares to $15.00. Although the market wasn't a fan of Temple & Webster's plan to invest heavily in its growth at the expense of its margins, Morgan Stanley believes it is the right thing to do. The broker expects this to strengthen its moat and leave it well-placed to benefit from the ongoing shift to online shopping. The Temple & Webster share price ended the week at $9.39.
