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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Pilbara Minerals Ltd (ASX: PLS)
According to a note out of Citi, its analysts have retained their buy rating and $4.80 price target on this lithium miner's shares. Although it expects that lithium prices may remain under pressure in the immediate term, Citi suspects that they could rebound in the coming months as restocking takes place in the Chinese battery materials market. The Pilbara Minerals share price ended the week at $3.98.
Rio Tinto Ltd (ASX: RIO)
A note out of Goldman Sachs reveals that its analysts have put a conviction buy rating on this mining giant's shares with an improved price target of $140.40. Goldman is bullish due to Rio Tinto's iron ore production growth outlook and its potential free cash flow per tonne improvements. It also believes that iron ore prices could be heading to US$150 a tonne in the near term thanks to supply deficits and restocking. The Rio Tinto share price was fetching $117.28 at Friday's close.
Xero Limited (ASX: XRO)
Analysts at Goldman Sachs have also retained their conviction buy rating on this cloud accounting platform provider's shares with an improved price target of $116.00. This follows news that Xero is making major cost reductions. Goldman was pleased with the news and has upgraded its earnings estimates for the coming years to reflect the changes. The Xero share price ended the week at $86.73.
