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:
Altium Limited (ASX: ALU)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $40.00 price target on this electronic design software platform provider’s shares. This follows the announcement that Altium is selling a non-core business to focus on its key Altium 365 platform. Morgan Stanley was encouraged by management’s comments on the platform and expects it to be the key driver of growth in the future. The broker was also pleased to see the company reiterate its full year guidance. Especially given the challenging operating environment. The Altium share price ended the week at $34.68.
Bapcor Ltd (ASX: BAP)
A note out of Citi reveals that its analysts have retained their buy rating and lifted the price target on this auto parts retailer’s shares to $8.85. The broker made the move following the release of a trading update which revealed stronger than expected sales growth. Citi expects this to result in a solid half year result in February. In addition to this, the broker likes Bapcor due to its defensive qualities, favourable tailwinds, and international expansion. The Bapcor share price was trading at $7.65 on Friday.
Zip Co Ltd (ASX: Z1P)
Analysts at Morgans have retained their add rating but trimmed the price target on this buy now pay later provider’s shares to $8.89. The broker made the revision to its price target to account for Zip’s $150 million equity raising last week. It notes that the funds will be used partly to support its growth in the key US market. Morgans was pleased with the accompanying update on its US business and the more than tripling of its transaction value in the country during November. Overall, the broker remains positive on the company’s future and sees strong growth ahead. The Zip share price ended the week at $5.44.
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More reading
- Could this be the saving grace for the Zip Co Ltd (ASX:Z1P) share price?
- Why Bapcor, Fortescue, Nufarm, & Saracen shares are pushing higher
- Here’s how ASX buy now, pay later (BNPL) shares have performed in 2020
- 2 ASX growth shares to buy that keep delivering wins
- ASX 200 rises on Thursday
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.
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