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Top brokers name 3 ASX shares to buy next week

James Mickleboro

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:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating and $11.00 price target on this iron ore producer’s shares following its quarterly update. Macquarie was pleased to see Fortescue outperform its expectations during the June quarter and provide stronger than expected guidance for FY 2020. In light of this, the broker believes there’s a chance that Fortescue will reward shareholders with a generous final dividend next month. Whilst I think Fortescue is a great option in the resources sector, it is worth remembering that it is highly dependent on iron ore prices remaining at elevated levels. If you’re confident they will, then I would consider it a buy.

Megaport Ltd (ASX: MP1)

A note out of Morgans reveals that its analysts have retained their add rating and lifted the price target on this elasticity connectivity and network services provider’s shares to $8.80. According to the note, the broker was pleased with Megaport’s performance in the last quarter and noted that its sales momentum appears to have accelerated. In light of this, it has upgraded its long term estimates materially and its price target to reflect this. I agree with Morgans on Megaport and feel it could be a great long-term investment.

National Australia Bank Ltd (ASX: NAB)

Analysts at Citi have retained their buy rating and $29.50 price target on this banking giant’s shares. According to the note, the broker believes the appointment of Ross McEwan as its chief executive officer and managing director is a good one. Further, it thinks that the combination of McEwan and chairman Phil Chronican is as strong and experienced as any in the country. I think Citi is spot on with NAB and would also class its shares as a buy.

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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 MEGAPORT FPO. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended MEGAPORT FPO. 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