Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.
Here’s why brokers think investors ought to buy them next week:
Afterpay Ltd (ASX: APT)
According to a note out of Morgan Stanley, its analysts have upgraded this payments company’s shares to an overweight rating and lifted the price target on them to $101.00. Morgan Stanley has been impressed with Afterpay’s growth and its better than expected credit quality. It expects more of the same in the near term and is forecasting revenue increasing at a compound annual growth rate of 60% through to FY 2022 with a stable net transaction margin of ~2%. This is expected to be underpinned by its in-store rollout in the U.S. and its expansion into China. I agree with Morgan Stanley and believe Afterpay would be a quality long term investment option.
Breville Group Ltd (ASX: BRG)
Analysts at Morgans have retained their add rating and $27.00 price target on this appliance manufacturer’s shares. According to the note, the broker believes Breville is well-placed for growth thanks to its international expansion, more eating at home because of the pandemic, and growing demand for coffee machines. I think Morgans makes some good points and Breville could be a good buy and hold option.
Crown Resorts Ltd (ASX: CWN)
A note out of Credit Suisse reveals that its analysts have retained their outperform rating but trimmed the price target on this casino and resorts operator’s shares to $10.80. The broker has downgraded its earnings estimates to reflect recent lockdowns in Melbourne. However, it believes investors should look beyond this short term pain and focus on its positive long term outlook. While I agree that it has a positive longer term outlook, I would keep my powder dry until the pandemic passes.
5 stocks under $5
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
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- The market is going long on the Afterpay share price but shorting its weaker rival
- How I’d build a $100,000 share portfolio with ASX ETFs
- These were the best performing ASX 200 shares last week
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Crown Resorts Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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