Top brokers name 3 ASX shares to buy next week

Telstra Corporation Ltd (ASX:TLS) shares are one of three that top brokers have named as buys…

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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:

Bega Cheese Ltd (ASX: BGA)

According to a note out of UBS, its analysts have retained their buy rating but cut the price target on this food company's shares  to $5.60. Its analysts believe that concerns over its balance sheet are unwarranted and they don't expect its debt to increase too much this year. Overall, the broker believes its shares are trading at a very attractive level and offer significant upside potential over the next 12 months. Whilst I agree that its shares look decent value, I think there are better options in the industry for investors to choose from.

People Infrastructure Ltd (ASX: PPE)

A note out of Ord Minnett reveals that its analysts have retained their buy rating and lifted the price target on this workforce management company's shares to $3.74. According to the note, People Infrastructure delivered a full year profit in line with its expectations in FY 2019. The broker expects more growth in the new financial year thanks partly to cross selling opportunities and its exposure to the healthcare sector. I agree with Ord Minnett on this one and feel it could be a great option for investors looking for investments at the small end of the market.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Morgans have retained their add rating but cut the price target on this telco giant's shares ever so slightly to $4.46. According to the note, the broker has adjusted its price target to reflect Telstra's EBITDA downgrade for FY 2020 following the NBN's roll out guidance revision. Regardless of this, Morgans remains positive on Telstra due to the return of rational competition and continues to forecast a 16 cents per share fully franked dividend for FY 2020 and FY 2021. I agree with Morgans on Telstra and feel it would be a good option for income investors in this low interest rate environment.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended People Infrastructure Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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