Due to the Christmas period, a number of brokers are taking well-deserved breaks. As a result, it has been a bit quiet on the broker note front this week.
But don't worry, if you're looking for buy ideas then here are three recent buy ratings that have caught my eye:
Afterpay Ltd (ASX: APT)
According to a note out of the Macquarie equities desk, its analysts have initiated coverage on this payments company's shares with an outperform rating and $38.00 price target. Macquarie appears confident that Afterpay has an enormous opportunity in the United States market. It estimates that this market is as much as 20 times larger than the ANZ market. Furthermore, although competition in the buy now pay later market is increasing, Macquarie appears to believe its first-mover advantage will help drive its growth and protect its margins. I think Macquarie is spot on and would be a buyer of its shares.
Bubs Australia Ltd (ASX: BUB)
Analysts at Citi have initiated coverage on this infant formula company's shares with a (high risk) buy rating and $1.40 price target. According to the note, Citi believes Bubs has a promising brand in a category which is growing quickly. The broker also notes that it has good connections in the industry, which should support its growth. Though, Citi does warn investors that it is a high risk option due to its early stage, loss-making operations. I think it is worth considering a small investment in Bubs' shares.
Scentre Group (ASX: SCG)
A note out of Goldman Sachs reveals that its analysts have retained their buy rating and lifted the price target on this shopping centre-focused property group's shares to $4.29. According to the note, Goldman Sachs upgraded its price target after factoring in the purchase of 50% of Garden City Booragoon for $570 million. The broker appears pleased with the deal and estimates that it is ~1% per annum accretive to FFO per share for Scentre. I think Goldman has made a good call and would be a buyer of its shares. Especially given its generous forward distribution yield of almost 6%.
