Top brokers name 3 ASX shares to buy next week

Brokers are feeling positive about 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:

Adairs Ltd (ASX: ADH)

According to a note out of UBS, its analysts have retained their buy rating and lifted their price target on this retailer’s shares to $5.40. Although the broker acknowledges that near term trading will be difficult because of lockdowns, it remains very positive on the future. Particularly given the quality of the business and its loyal customer base. Based on UBS’ forecasts, the company’s shares are changing hands for a little over 11x estimated FY 2022 earnings. The Adairs share price finished the week at $3.91.

Ramsay Health Care Limited (ASX: RHC)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $75.50 price target on this private hospital operator’s shares. Macquarie believes that Ramsay’s shares are undervalued at the current level. This is based on its positive medium term growth outlook and the strength of its property portfolio in Australia. The Ramsay share price was fetching $70.06 at Friday’s close.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Morgan Stanley have retained their overweight rating and lifted their price target on this telco giant’s shares to $4.50. According to the note, the broker was pleased with Telstra’s T25 update last week. It notes that management is targeting solid earnings per share growth post-FY 2022. Telstra’s targets were largely in line with what the broker was expecting. Morgan Stanley sees this growth target as a big positive following several years of declines since the NBN rollout began. The Telstra share price ended the week at $3.92.

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Motley Fool contributor 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 ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO and Telstra Corporation Limited. The Motley Fool Australia has recommended Ramsay Health Care 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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