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:
Austal Limited (ASX: ASB)
According to a note out of Citi, its analysts have upgraded this shipbuilder's shares to a buy rating and lifted the price target on them to $4.40. The broker believes that Austal could surprise to the upside during the upcoming earnings season. It has also pointed to news relating to Subic Bay and the softer Australian dollar as potential positive catalysts in FY 2020. I think Citi makes some good points and Austal is worth a closer look.
Nearmap Ltd (ASX: NEA)
Analysts at Morgan Stanley have retained their overweight rating but cut the price target on this aerial imagery technology and location data company's shares to $2.30 following its guidance downgrade. According to the note, the broker is a touch concerned by its higher than normal churn levels in the United States and a slowdown in growth in Australia. However, it seems confident that this recent blip is not due to competition and things will improve. In light of this, it appears to see the pullback in its share price as a buying opportunity for investors. I think Morgan Stanley is spot on and Nearmap would be worth considering once the dust settles.
Qantas Airways Limited (ASX: QAN)
A note out of UBS reveals that its analysts have retained their buy rating but trimmed the price target on this airline operator's shares to $7.30. According to the note, the broker has reduced its earnings estimates in response to the coronavirus outbreak and the recent devastating bushfires. And although it acknowledges that there is downside risk to its earnings in FY 2020 if things intensify, for now it believes its shares are a buy at the current level. I agree with UBS and would be a buyer of Qantas shares.
