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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this infant formula company's shares to $7.30. Citi lifted its price target after upgrading its earnings estimates slightly for the coming years. Outside this, the broker has been encouraged by the improvement in A2 Milk's inventory position, restructured distributor agreements, and the strength of the brand in China. The A2 Milk share price ended the week at $6.00.
Adairs Ltd (ASX: ADH)
A note out of UBS reveals that its analysts have retained their buy rating and lifted their price target on this homewares retailer's shares to $5.90. This follows news that the company has agreed to acquire furniture retailer Focus on Furniture for $80 million. UBS is a fan of the deal and notes that it means Adairs now has a complete home furnishing offering. It expects the acquisition to support strong earnings growth over the coming years and has upgraded its forecasts to reflect this. The Adairs share price was fetching $3.64 at the end of the week.
Domain Holdings Australia Ltd (ASX: DHG)
Another note out of Citi reveals that its analysts have recommenced coverage on this property listings company's shares with a buy rating and $6.50 price target. Citi is positive on Domain due to its belief that listings volumes will remain elevated in the near term. In addition, the broker is a fan of Domain's recent investments in property data solutions to create a property ecosystem and believes its shares trade at a more attractive valuation compared to REA Group Limited (ASX: REA). The Domain share price was trading at $5.38 on Friday.
