Top brokers name 3 ASX shares to buy next week

Top brokers have named Afterpay Ltd (ASX:APT) and these ASX shares as buys for next week. Here’s why they are bullish on them…

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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 NZ$13.50 (A$12.50) price target on this infant formula company’s shares. UBS believes that A2 Milk’s efforts to tighten its inventory are working without damaging its brand. In addition to this, the broker’s research indicates that pricing for a2 Platinum is improving. The a2 Milk share price ended the week notably lower than this price target at $5.55.

Afterpay Ltd (ASX: APT)

A note out of Macquarie reveals that its analysts have upgraded this payments company’s shares to an outperform rating with a $120.00 price target. Macquarie has been looking into the US market and believes that Afterpay is well-positioned thanks to its wide merchant network. This is because the broker’s research indicates that shoppers are showing little loyalty with BNPL providers and would sooner use another provider instead of shopping elsewhere. Looking ahead, the broker expects the BNPL market to continue to grow over the next decade. So much so, it estimates that it could be worth a total of $3.8 trillion by 2030. The Afterpay share price ended the week at $93.00.

BHP Group Ltd (ASX: BHP)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and $57.00 price target on this mining giant’s shares. Macquarie notes that production has commenced at its South Flank iron ore project. And while it will ramp up production over the coming years, it doesn’t impact Macquarie’s forecasts. This is due to South Flank replacing the Yandi mine, which is reaching the end of its mine life. Outside this, the broker is expecting a record second half result in FY 2021 thanks to sky high iron ore prices. This could lead to greater than expected dividends. The BHP share price was fetching $47.75 at Friday’s close.

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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 AFTERPAY T FPO. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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