Top brokers name 3 ASX shares to buy next week

Brokers think these ASX shares could be in the buy zone…

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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:

MNF Group Ltd (ASX: MNF)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $6.30 price target on this VoIP provider’s shares. This follows news that MNF is divesting part of its direct business. Morgan Stanley believes offloading the slow growing part of the business is a smart move by management and puts MNF in a stronger position for growth from its higher quality wholesale businesses which have exposure to structural tailwinds. The MNF share price ended the week at $5.40.

Sezzle Inc (ASX: SZL)

Analysts at Ord Minnett have retained their buy rating and $11.90 price target on this buy now pay later (BNPL) provider’s shares. According to the note, the broker believes Sezzle’s deal with US retail giant Target could be a game changer. It expects the deal to be a major boost to its sales and has upgraded its estimates to reflect this. The Sezzle share price was fetching $9.24 at Friday’s close.

Zip Co Ltd (ASX: Z1P)

A note out of Citi reveals that its analysts have retained their buy rating but trimmed their price target on this BNPL provider’s shares slightly to $10.90. The broker notes that recent data appears to show slowing growth in the BNPL sector, which it feels is due largely to elevated sales at the height of the pandemic. Positively, though, its US-based Quadpay business is delivering the strongest growth in the key market, albeit slightly below Citi’s expectations. Nevertheless, the broker remains positive on Zip and sees value in its shares at the current level. The Zip share price was trading at $7.15 on Friday.

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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 and has recommended MNF Group Limited and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Sezzle Inc. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. The Motley Fool Australia has recommended Sezzle Inc. 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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