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Top brokers name 3 ASX shares to buy next week

James Mickleboro
ASX 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:

GrainCorp Ltd (ASX: GNC)

According to a note out of UBS, its analysts have retained their buy rating but reduced the price target on this integrated grains company’s shares to $9.65 following the release of its half year results. Although GrainCorp delivered a much weaker result than the broker expected, it continues to see value in the company’s de-merger plans. In light of this, it has retained its buy recommendation. I agree with UBS on GrainCorp. I think the company’s plan to split into two separate entities is a great idea. I’m particularly interested in “MaltCo”, its fast-growing global malting business.

Qantas Airways Limited (ASX: QAN)

Analysts at Deutsche Bank have retained their buy rating and $6.40 price target on this airline operator’s shares following the release of its third quarter update. According to the note, it was pleased with the company’s solid performance in the third quarter. And although it does have concerns that domestic demand is softening, it isn’t enough to change its stance. Deutsche remains confident Qantas will be able to offset higher fuel costs and return excess capital to shareholders. I think Deutsche is spot on with Qantas and would class it as a buy.

Telstra Corporation Ltd (ASX: TLS)

Another note out of Deutsche Bank reveals that its analysts have held firm with their buy rating and $3.70 price target on Telstra’s shares following the ACCC’s decision to block the TPG Telecom Ltd (ASX: TPM)-Vodafone Australia merger. According to the note, the broker sees this as a positive for the telco giant as it reduces 5G competition in the medium term and strengthens Telstra’s first-mover advantage. I’ve warmed to Telstra in recent weeks and would agree that its shares are a buy now.

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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. 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