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:
A2 Milk Company Ltd (ASX: A2M)
A note out of UBS reveals that its analysts have retained their buy rating and NZ$22.00 (A$20.25) price target on this fresh milk and infant formula company’s shares. According to the note, UBS believes a2 Milk could outperform the market’s expectations when it releases its results this month. It notes that demand for its infant formula has been particularly strong on Chinese ecommerce platforms. I think UBS is spot on and a2 Milk shares would be great long term options for investors.
Coles Group Ltd (ASX: COL)
Analysts at Citi have retained their buy rating and put a price target of $21.40 on this supermarket operator’s shares. According to the note, the broker believes that Coles is benefiting from very positive trading conditions. As a result, it expects the company to have a strong first half to FY 2021. In addition to this, although its shares trade at a premium to the market average, the broker believes this is deserved because of its defensive qualities and the stability of its earnings and dividend. I agree with Citi and would be a buyer of Coles shares.
Treasury Wine Estates Ltd (ASX: TWE)
According to a note out of the Macquarie equities desk, its analysts have upgraded this wine company’s shares to an outperform rating with a $14.90 price target. The broker made the move after Treasury Wine delivered a full year result in line with expectations. It was also pleased with its costs cutting plans and news that Chinese sales were rebounding. The latter gives the broker confidence in Treasury Wine’s medium term growth prospects. I think Macquarie makes some good points and it could be worth considering.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of A2 Milk and COLESGROUP DEF SET. 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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