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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Lovisa Holdings Ltd (ASX: LOV)
According to a note out of UBS, its analysts have upgraded this fashion jewellery retailer's shares to a buy rating with an increased price target of $29.00. UBS was impressed with Lovisa's trading update and points out that it is outperforming its peers. The broker also highlights that the company's global expansion continues to gather pace with several new markets about to be entered. Combined, the broker has lifted its earnings estimates and valuation accordingly. The Lovisa share price was fetching $23.50 at Friday's close.
QBE Insurance Group Ltd (ASX: QBE)
A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this insurance giant's shares to $15.40. The broker wasn't overly surprised with QBE's recent trading update. And while it sees a modest risk in QBE's upcoming reinsurance renewal, it doesn't appear overly concerned given the supportive premium rate environment and the exit running yield of 3.7% on fixed income investments. All in all, while the broker has reduced its earnings estimates for FY 2022, higher yields has led to an increase in earnings beyond this. The QBE share price ended the week at $13.02.
Qantas Airways Limited (ASX: QAN)
Another note out of UBS reveals that its analysts have retained their buy rating and lifted their price target on this airline operator's shares to $7.60. This follows the release of a trading update last week which revealed a stronger than expected profit and lower net debt for the first half of FY 2023. UBS was pleased with the update and expects the strong form to continue into FY 2024. The Qantas share price was fetching $6.06 on Friday.
