Top brokers name 3 ASX shares to buy next week

Brokers are feeling positive about these ASX shares…

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Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

BHP Group Ltd (ASX: BHP)

According to a note out of Morgans, its analysts have upgraded this mining giant’s shares to an add rating with an improved price target of $46.05. The broker believes the recent weakness in the BHP share price could be a buying opportunity for investors. Particularly given how it feels the current share price implies an iron ore price almost half the current level. In addition, the broker expects a double-digit dividend yield in FY 2022 despite the iron ore price pullback this year. The BHP share price ended the week at $37.65.


A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this data centre operator’s shares to $16.10. Macquarie believes that the company has a big opportunity with edge data centres and sees them as a way to boost margins. In addition, the broker notes that with borders reopening, NEXTDC could start to focus on its overseas opportunities. The NEXTDC share price was fetching $11.80 at Friday’s close.

Transurban Group (ASX: TCL)

Analysts at Credit Suisse have retained their outperform rating and lifted their price target on this toll road operator’s shares to $15.15. According to the note, the broker was pleased with the company’s first quarter update. Although traffic volumes were down year on year, they were not down as much as it was expecting. Combined with an earlier than forecast reopening of Melbourne and Sydney, the broker has upgraded its earnings and dividends estimates meaningfully. In respect to the latter, Credit Suisse expects a dividend of 41.5 cents per share in FY 2022 before growing to 61.5 cents per share in FY 2023. The Transurban share price ended the week at $13.75.

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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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