Top brokers name 3 ASX shares to buy next week

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:

Costa Group Holdings Ltd (ASX: CGC)

According to a note out of Goldman Sachs, its analysts have retained their buy rating but trimmed their price target on this horticulture company’s shares to $3.65. This follows the release of a trading update which didn’t go down well with the market but was well-received by Goldman Sachs. Its analysts believe that the company’s pricing is outpacing cost inflation and will support margin expansion. All in all, the broker believes Costa is well positioned to deliver strong earnings growth through to FY 2024. The Costa share price ended the week at $2.54.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

A note out of Citi reveals that its analysts have retained their buy rating but cut their price target on this pizza chain operator’s shares to $92.95. While Citi acknowledges that inflation and labour shortages could impact the company’s performance, it remains positive. Its bullish view is predicated on potential upside from possible M&A activity, upside to long term store rollout plans, and sales rebounding later in 2022 once it has cycled through abnormal comps. The Domino’s share price was fetching $71.13 at the end of the week.

Santos Ltd (ASX: STO)

Analysts at Morgans have retained their add rating but cut their price target on this energy producer’s shares to $9.30. According to the note, the broker has lifted its oil price forecasts for the coming years. However, this has been offset by higher weighted average cost of capital assumptions. Nevertheless, the broker remains positive and has named Santos as a key sector pick. The Santos share price ended the week at $6.99.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 highly rated ASX dividend shares that brokers say are buys
• Why this broker is bullish on the Santos share price
• What I’d do with 3 ASX shares that have plunged this year: expert
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended COSTA GRP FPO and Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/XkKDuWx