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:
Collins Foods Ltd (ASX: CKF)
A note out of UBS reveals that its analysts have upgraded this quick service restaurant operator’s shares to a buy rating with a slightly reduced price target of $8.95. According to the note, the broker was pleased to see the company’s KFC Australia operations have been performing well during the pandemic. In light of this, its defensive qualities, and attractive valuation, the broker believes Collins Foods’ shares are in the buy zone. I would agree with UBS on this one and feel it would be a good option for investors.
Harvey Norman Holdings Limited (ASX: HVN)
According to a note out of Goldman Sachs, its analysts have upgraded the retailer’s shares to a buy rating with an improved price target of $3.85. The broker made the move after industry feedback suggested that sales trends are proving more resilient across the sector than expected only a few months ago. In light of this, the broker has updated its forecasts for Harvey Norman in FY 2020 and FY 2021. While not my favourite option in the retail sector, I think it could be worth a closer look at this level.
NEXTDC Ltd (ASX: NXT)
Analysts at Morgan Stanley have retained their overweight rating and lifted the price target on this data centre operator’s shares to $10.50. According to the note, the broker believes NEXTDC is well-positioned for growth thanks to its ability to take advantage of the accelerated demand for cloud services. This follows the announcements of major new contracts in Melbourne and Sydney in recent weeks. The latter has led to the company pushing ahead with the construction of its third data centre in the city. I agree with Morgan Stanley and feel NEXTDC would be a great long term option.
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Returns as of 7/4/2020
More reading
- What to watch on the ASX 200 next week
- The ASX 200 blue chip shares I would buy with $5,000 after the market crash
- Top broker urging you to buy this ASX 200 retail stock next week
- Why I’d buy and hold CSL shares forever
- These were the best performing ASX 200 shares last week
Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited and NEXTDC Limited. The Motley Fool Australia has recommended Collins Foods 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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