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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AGL Energy Limited (ASX: AGL)
According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this energy company's shares to $9.67. Morgans notes that AGL remains its preferred exposure to electricity prices. This is because it sees cheap fuel costs from low cost coal underpinning an earnings recovery despite some underperformance in the legacy generation fleet. The AGL share price ended the week at $8.31.
Domino's Pizza Enterprises Ltd (ASX: DMP)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $100.00 price target on this pizza chain operator's shares. The broker was pleased to see Domino's introduce a 6% service fee on deliveries to offset cost inflation. Its analysts believe this highlights that the company has opportunities to support its margins. In light of this, the broker suspects that Domino's could outperform the market's expectations in FY 2023. The Domino's share price was fetching $75.51 at Friday's close.
Sonic Healthcare Limited (ASX: SHL)
Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $33.30 price target on this healthcare company's shares. The broker notes that recent Medicare data shows that Sonic is still benefiting from COVID testing demand. It was also pleased to see that diagnostic imaging demand is recovering. Overall, based on this data, it believes the company's shares are trading at an attractive level compared to peers. The Sonic share price ended the week at $33.30.
