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:
Coles Group Ltd (ASX: COL)
A note out of the Macquarie equities desk reveals that its analysts have upgraded this supermarket operator's shares from a neutral rating to an outperform rating with a $17.20 price target. Macquarie made the upgrade largely on valuation grounds following a recent pullback in its share price. It feels this has left its shares trading at an attractive level, especially given the quality of the company and its positive start to the second half. I agree with Macquarie on Coles and think it would be a good option for investors.
NEXTDC Ltd (ASX: NXT)
Analysts at Citi have retained their buy rating and lifted the price target on this data centre operator's shares to $9.55. The broker made the move after NEXTDC announced major new hyper scale contracts at its Victorian data centres. Citi believes these contracts provide good earnings visibility and sees upside risk to its earnings estimates if more new contracts follow. I would have to agree with Citi on NEXTDC and believe it could be a great buy and hold option for investors thanks to the cloud computing boom.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but cut the price target on this airport operator's shares to $8.23. According to the note, the broker has reduced its earnings estimates over the next few years to reflect the disruption caused by the coronavirus outbreak. And while it expects this to lead to a dividend cut, it still sees value in its shares. I think Macquarie is spot on and feel Sydney Airport would still be a great option for income investors.
