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Top brokers name 3 ASX shares to buy next week

James Mickleboro
Buy 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:

Austal Limited (ASX: ASB)

According to a note out of Citi, its analysts have upgraded this shipbuilder’s shares to a buy rating and lifted the price target on them to $4.40. The broker believes that Austal could surprise to the upside during the upcoming earnings season. It has also pointed to news relating to Subic Bay and the softer Australian dollar as potential positive catalysts in FY 2020. I think Citi makes some good points and Austal is worth a closer look.

Nearmap Ltd (ASX: NEA)

Analysts at Morgan Stanley have retained their overweight rating but cut the price target on this aerial imagery technology and location data company’s shares to $2.30 following its guidance downgrade. According to the note, the broker is a touch concerned by its higher than normal churn levels in the United States and a slowdown in growth in Australia. However, it seems confident that this recent blip is not due to competition and things will improve. In light of this, it appears to see the pullback in its share price as a buying opportunity for investors. I think Morgan Stanley is spot on and Nearmap would be worth considering once the dust settles.

Qantas Airways Limited (ASX: QAN)

A note out of UBS reveals that its analysts have retained their buy rating but trimmed the price target on this airline operator’s shares to $7.30. According to the note, the broker has reduced its earnings estimates in response to the coronavirus outbreak and the recent devastating bushfires. And although it acknowledges that there is downside risk to its earnings in FY 2020 if things intensify, for now it believes its shares are a buy at the current level. I agree with UBS and would be a buyer of Qantas shares.

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

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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 Nearmap 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.

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. 2020