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:
Costa Group Holdings Ltd (ASX: CGC)
According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating but trimmed the price target on this horticulture company's shares slightly to $6.03. Although the broker notes that its international earnings may be slightly weaker than expected, it remains confident on its local business due to improving trading conditions. I agree with Macquarie on Costa and feel it could be a good option for investors.
Qantas Airways Limited (ASX: QAN)
Analysts at Credit Suisse have upgraded this airline operator's shares to an outperform rating and lifted the price target on them to $6.40. According to the note, the broker believes that the Coalition's election victory will be a positive for corporate travel in Australia. In addition to this, news that Virgin Australia Holdings Ltd (ASX: VAH) plans to cut capacity should also be a positive for the airline. I think Credit Suisse is spot on with this recommendation and would suggest investors choose it ahead of rival Virgin Australia.
Super Retail Group Ltd (ASX: SUL)
A note out of Morgan Stanley reveals that its analysts have upgraded this retailer's shares to an overweight rating and increased the price target on them to $10.00. According to the note, the broker believes the company has now finished with its heightened capital expenditures and expects strong free cash flow generation. In addition to this, the broker feels that the market has undervalued its automotive business. I agree with Morgan Stanley and would class Super Retail's shares as a buy.
