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:
GUD Holdings Limited (ASX: GUD)
According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this diversified products company’s shares to $15.70. The broker sees strategic value in GUD’s plan to acquire Auto Pacific Group. Citi notes that it provides exposure to the 4×4 growth sector and geographic diversity. The broker has upgraded its earnings per share estimates for FY 2023 and FY 2024 materially to reflect the deal. So much so, the broker estimates that GUD trades at 10x FY 2024 earnings. The GUD share price ended the week at $11.10.
Rio Tinto Limited (ASX: RIO)
Another note out of Citi reveals that its analysts have retained their buy rating and $115.00 price target on this mining giant’s shares. Citi continues to have a preference for Rio Tinto among the larger miners. This is due partly to its exposure to green aluminium. It highlights that Rio Tinto’s hydro powered Canadian smelters emit <4t CO2/t of production versus industry average of 11.5t. It expects this to provide a competitive advantage over peers as markets start to price carbon costs into valuations. It also notes that the company is looking to commercialise the ELYSIS smelting process to further reduce carbon intensity in the aluminium value chain. The Rio Tinto share price was fetching $95.52 at Friday’s close.
Superloop Ltd (ASX: SLC)
Analysts at Morgan Stanley have upgraded this telco’s shares to an overweight rating with a $1.45 price target. The broker believes Superloop is a turnaround story following a period of divestments and balance sheet repair. In addition, it notes that the company is aiming to double its revenue share in the telco market in the coming years. Morgan Stanley believes this is achievable thanks partly to its fibre network. The Superloop share price ended the week at $1.26.