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:
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BHP Group Ltd (ASX: BHP)
According to a note out of Citi, its analysts have upgraded this mining giant's shares to a buy rating with an improved price target of $56.00. While Citi acknowledges that BHP's operational performance disappointed during the recent quarter, it feels investors should look beyond this due to the mountain of cash flow the Big Australian is generating. This is expected to underpin big dividends. The BHP share price ended the week at $48.49.
Santos Ltd (ASX: STO)
A note out of Morgans reveals that its analysts have retained their add rating and put a $10.10 price target on this energy producer's shares. Its analysts believe that the company's decision to launch a share buyback, despite its shares trading in or around multi-year highs, is a sign that management believes its shares are cheap. Outside this, the broker expects the resilience of its growth profile and diversified earnings base to help Santos outperform. The Santos share price was fetching $8.15 at Friday's close.
Xero Limited (ASX: XRO)
Analysts at Goldman Sachs have reiterated their buy rating but trimmed their price target on this cloud accounting platform provider's shares to $133.00. Following a recent period of underperformance, the broker believes this has created an attractive entry point into a compelling global growth story. Xero continues to be Goldman's preferred large cap technology name in the ANZ region. The Xero share price ended the week at $97.84.
