It was another busy week of broker note releases following a large number of half year releases and corporate developments.
Three buy ratings that caught my eye are summarised below. Here's why brokers think investors ought to buy them next week:
CSL Limited (ASX: CSL)
According to a note out of Goldman Sachs, it has retained its buy rating and $217.00 price target on this global biotech giant's shares ahead of its half year results release. Goldman has tipped CSL as a share that is likely to surprise during earnings season. This is due partly to industry data pointing to strong immunoglobulin demand and pricing tailwinds. The broker believes this will bolster the top line and support its margins. In addition to this, it expects its Haegarda product to have grown its market share despite the recent release of the competing Takhzyro product. I agree with Goldman on CSL and feel it could be a great buy and hold investment.
IDP Education Ltd (ASX: IEL)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and lifted the price target on this education services provider's shares to $15.20 following its strong first half result. In the first half of FY 2019 the company posted a 26% increase in revenue to $304.3 million and an impressive 34% lift in net profit after tax to $40.7 million. This was driven by a 19% increase in English Language Testing revenue and a 36% lift in Student Placement revenue. Macquarie was impressed with the company's performance and also the progress that its digital business is making. It expects this to boost earnings and margins in the future. Whilst I'm a big fan of IDP Education, I think its shares are a touch expensive now at 50x estimated FY 2019 earnings.
National Australia Bank Ltd (ASX: NAB)
Analysts at Deutsche Bank have retained their buy rating and $29.00 price target on this banking giant's shares following its leadership changes and the release of its first quarter results. According to the note, the broker expects the changes at the top to be a positive catalyst for the bank and its shares. Deutsche now believes the board should look at cutting its dividend to a more manageable level in order to remove the remaining uncertainty. I agree with Deutsche that NAB's shares are in the buy zone.
