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 Morgans, its analysts have retained their add rating but cut their price target on this horticulture company’s shares to $2.90. This follows the release of a disappointing update last week which revealed that worse than expected adverse weather is impacting its operations. As a result, its profits are now only expected to be marginally higher year on year in FY 2022. While disappointed, Morgans continues to believe that Costa is a buy for patient investors. This is due to its belief that its shares are undervalued based on more normalised earnings and its growth projects. The Costa share price ended the week at $2.23.

Metcash Limited (ASX: MTS)

A note out of UBS reveals that its analysts have retained their buy rating and $5.00 price target on this wholesale distributor’s shares. This follows the company’s investor day event last week which revealed strong growth from its hardware pillar and positive commentary on its new distribution centre. The former is benefiting from housing starts and the renovation market. The Metcash share price was fetching $3.90 at Friday’s close.

Pilbara Minerals Ltd (ASX: PLS)

Analysts at Macquarie have retained their outperform rating and $5.70 price target on this lithium miner’s shares. According to the note, the broker was pleased with the results of the company’s latest digital auction. Macquarie notes that Pilbara Minerals accepted a pre-auction bid that was once again higher month on month. Looking ahead, the broker is expecting more regular sales on the platform in the near future thanks to the ramp up of the Ngungaju project. The Pilbara Minerals share price ended the week at $5.07.

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

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 5 ASX lithium shares to buy now
• If I’d bought $5,000 of Pilbara Minerals shares at the end of June, here’s how much I could bank right now
• 5 big ASX announcements making news this week
• Here are the top 10 ASX 200 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 Metcash 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/I0svNO9