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Top brokers name 3 ASX shares to buy next week

James Mickleboro
Trade fund manager selling shares

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, its analysts have retained their buy rating and $42.90 price target on this payments company’s shares following its business update. Goldman notes that Afterpay generated $2.7 billion in underlying sales during the first four months of FY 2020. The company also grew its active customers by 15,000 per day during October to end it at a massive 6.1 million. The broker appears impressed with this performance, which was ahead of its expectations. I agree with Goldman Sachs and feel Afterpay could be a great long-term investment.

BINGO Industries Ltd (ASX: BIN)

Analysts at UBS have retained their buy rating and lifted the price target on this waste management company’s shares to $3.15. According to the note, the broker made the move after BINGO released its guidance for FY 2020. It expects to deliver EBITDA of $159 million to $164 million. This led to the broker lifting its forecasts for BINGO. Though they could still go higher pending potential opportunities at Eastern Creek and with landfill levies in Victoria. I think UBS is spot on with BINGO and would be a buyer of its shares.

Jumbo Interactive Ltd (ASX: JIN)

A note out of the Morgan Stanley equities desk reveals that its analysts have retained their overweight rating and $24.00 price target on this online lottery ticket seller’s shares. According to the note, the broker appears pleased with the company’s decision to enter the UK market through the acquisition of Gatherwell. Whilst initially the focus will be on smaller local lotteries, it believes it will give it the opportunity to enter more established UK lotteries in time. Whilst I think its shares are about fair value now, I would still be a buyer if you planned to hold them for the long term.

The post Top brokers name 3 ASX shares to buy next week appeared first on Motley Fool Australia.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Jumbo Interactive Limited. 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.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019