Last week saw a 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:
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Bank of Queensland Limited (ASX: BOQ)
According to a note out of Macquarie, its analysts have resumed coverage on this regional bank's shares with an outperform rating with a $10.00 price target. It is expecting Bank of Queensland's deposit volumes to remain strong thanks to its higher interest rates. In addition, the broker believes the risk/reward from its acquisition of ME Bank, which has now complete, is favourable for investors. In light of this, it sees a lot of value in its shares at the current level. The Bank of Queensland share price ended the week at $8.85.
Life360 Inc (ASX: 360)
A note out of Bell Potter reveals that its analysts have retained their buy rating and lifted their price target on this family focused app maker's shares to $9.25. Bell Potter increased its price target to reflect the recent takeover of a comparable company, Nextdoor, on much higher multiples. It believes Life360 is a higher quality company due to its stickier subscription revenues and thus deserves to trade on higher multiples. Though, it is worth noting that its price target still only equates to a forward EV/Revenue multiple of ~10x. Whereas Nextdoor was taken over at ~20x. The Life360 share price ended the week at $7.91.
Praemium Ltd (ASX: PPS)
Analysts at Ord Minnett have retained their buy rating and lifted their price target on this investment platform provider's shares to $1.40. According to the note, the broker was pleased with the company's performance in the fourth quarter. It also notes that Praemium has received strong interest for its international business, which it plans to sell. Ord Minnett believes selling this could make Praemium an attractive acquisition target for one of its larger domestic peers. The Praemium share price was fetching $1.19 at Friday's close.
