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:
Collins Foods Ltd (ASX: CKF)
According to a note out of Morgans, its analysts upgraded this KFC restaurant operator’s shares to an add rating with a trimmed price target of $11.50. Morgans was impressed with Collins Foods’ full year result. And while its analysts expect inflationary pressures to weigh on its margins in FY 2023, it has still lifted its earnings estimates for the next two financial years to reflect stronger than expected sales growth. This is expected to be supported by resilient consumer demand and strong pricing power. The Collins Foods share price ended the week at $10.02.
IGO Ltd (ASX: IGO)
A note out of Macquarie reveals that its analysts have retained their outperform rating and $17.00 price target on this battery metals miner’s shares. Macquarie is bullish on IGO due to its world class lithium business, which it expects to underpin material earnings growth in the near term. Furthermore, the broker highlights that the company’s shares trade at a discount to lithium peers. The IGO share price was fetching $9.83 at Friday’s close.
Qantas Airways Limited (ASX: QAN)
Analysts at Morgan Stanley have retained their overweight rating but trimmed their price target on this airline operator’s shares to $6.60. This followed the release of a business update which revealed a much stronger balance sheet that Morgan Stanley was expecting. And while the broker has reduced its earnings estimates to reflect higher fuel costs, it expects higher airfares and reduced capacity to provide some relief. The Qantas share price ended the week at $4.45.