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:
Afterpay Touch Group Ltd (ASX: APT)
According to a note out of Goldman Sachs, it has retained its conviction buy rating and $27.10 price target on this payments company's shares following its business update. Although its underlying sales were lower than the broker expected, it was pleased to see strong customer additions in the U.S. market and the ANZ business performing in line with its forecasts. I agree with Goldman on Afterpay and feel it could be a great long term investment option.
Nearmap Ltd (ASX: NEA)
A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $4.20 price target on this aerial imagery technology and location data company's shares after it announced the launch of new products. According to the note, the broker points out that previous product launches have generated a meaningful increase in demand in the past and these could potentially do likewise if the management can successfully commercialise them. I agree with Morgan Stanley on Nearmap and think it could be a great long-term investment.
Santos Ltd (ASX: STO)
Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $7.70 price target on this energy producer's shares after it provided an update on drilling at its Dorado-2 well. According to the note, now that the company's activities appear to have uncovered a major oil and gas resource, the broker expects the market to de-risk the discovery. However, it acknowledges that is still too soon to know the true size of Dorado and therefore makes no change to its current recommendation and price target. Whilst I agree with Morgan Stanley on Santos, I intend to see how oil prices fare over the coming months before considering an investment.
