Top brokers name 3 ASX shares to buy next week

Here’s why brokers are bullish on these ASX shares…

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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:

Origin Energy Ltd (ASX: ORG)

According to a note out of Ord Minnett, its analysts have retained their buy rating and increased their price target on this energy company’s shares to $5.75. The broker made the move on the belief that electricity prices are improving after a recent downturn. In addition to this, the broker is expecting the APLNG business to generate strong free cash flow. The Origin share price ended the week at $4.72. Ord Minnett’s price target implies potential upside of 22% over the next 12 months.

Sonic Healthcare Limited (ASX: SHL)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and $40.00 price target on this healthcare company’s shares. According to the note, although vaccines are being rolled out globally, testing for COVID-19 remains strong. This bodes well for Sonic, which has been benefiting greatly from high testing volumes. As a result, the broker has increased its earnings estimates to reflect this. The Sonic share price was fetching $35.16 at Friday’s close. Credit Suisse’s price target represents potential upside of almost 14%.

Telstra Corporation Ltd (ASX: TLS)

Another note out of Ord Minnett reveals that its analysts have retained their buy rating and $4.10 price target on this telco giant’s shares. According to the note, although rival Vodafone has extended its discounts for another month at least, the broker continues to believe that Telstra’s superior 5G network is underpinning mobile subscriber growth. This may be supportive of ARPU growth in the mobile business in the near term. The Telstra share price ended the week at $3.58. Ord Minnett’s price target implies upside of 14.5%.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited. 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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