Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.
Here's why brokers think investors ought to buy them next week:
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Allkem Ltd (ASX: AKE)
According to a note out of Citi, its analysts have retained their buy rating and increased their price target on this lithium miner's shares to $17.80. Although Citi suspects that lithium prices could have peaked amid slowing electric vehicle demand in China, it doesn't appear too concerned due to strong contracted prices. Combined with production growth, Citi remains positive on Allkem's outlook. The Allkem share price ended the week at $11.60.
Qantas Airways Limited (ASX: QAN)
A note out of Goldman Sachs reveals that its analysts have reiterated their conviction buy rating and $8.20 price target on this airline operator's shares. The broker believes that Qantas' shares are materially undervalued given the significant improvement in its profitability. In fact, it highlights that its market capitalisation is lower than pre-COVID levels despite its FY 2023 earnings per share expected to be some 60% higher than FY 2019's earnings. The Qantas share price was fetching $6.11 at Friday's close.
REA Group Limited (ASX: REA)
Another note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating on this property listings company's shares with a trimmed price target of $158.00. According to the note, the broker believes recent share price weakness has created a buying opportunity for investors. Particularly given that its shares trade at a 20% discount to historical earnings multiples. The REA share price ended the week at $110.62.
