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 Citi, its analysts have initiated coverage on this elasticity connectivity and network services interconnection provider’s shares with a buy rating and $20.00 price target. Citi likes Megaport due to its belief that it is well-placed to grow its revenue at a rapid rate over the next three years. This is thanks to multiple trends such as increasing multi-cloud adoption, infrastructure and computing getting more distributed, and increasing digitisation. Citi also expects operating leverage from the company as it scales. The Megaport share price ended the week at $17.72.
Northern Star Resources Ltd (ASX: NST)
A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this gold miner’s shares to $14.00. The broker made the move after lifting its gold price estimates for the medium term. Based on these forecasts, its analysts believe the company’s shares are undervalued. Macquarie also reiterates that Northern Star is its top large cap gold miner pick. The Northern Star share price was fetching $8.76 on Friday.
Transurban Group (ASX: TCL)
Analysts at Credit Suisse have upgraded this toll road operator’s shares to an outperform rating with an improved price target of $15.10. The broker was pleased with the company’s plan to acquire the remainder of the WestConnex project from the NSW government. Credit Suisse feels it is paying a fair price and expects the acquisition to support its future growth. The Transurban share price ended the week at $14.05.