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Top brokers name 3 ASX shares to buy next week

James Mickleboro
Brokers trading 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:

Australia and New Zealand Banking Group (ASX: ANZ)

According to a note out of Morgans, its analysts have upgraded this banking giant’s shares to an add rating from neutral and held firm with their $29.00 price target. The broker made the move largely on valuation grounds after a pullback in its share price over the last few weeks. In addition to this, it thinks recent actions by APRA will be a positive for the banking sector and believes low bond yields are making the banks attractive for income investors. I agree with Morgans on ANZ and would class its shares as a buy.

Nearmap Ltd (ASX: NEA)

A note out of Citi reveals that its analysts have retained their buy rating and lifted the price target on this aerial imagery technology and location data company’s shares to $4.39. According to the note, the broker thinks that investors should take advantage of a recent drop in the Nearmap share price. It believes that the company is well-positioned for strong growth thanks partly to its sizeable market opportunity in North America. I think Citi is spot on and Nearmap could be a great option for growth investors next week.

Santos Ltd (ASX: STO)

Equity analysts at Macquarie have retained their outperform rating and trimmed the price target on this energy producer’s shares slightly to $8.10 following its latest update. According to the note, it was a touch disappointed with Santos’ sales performance in the June quarter, but appears pleased to have seen its cost guidance lowered. Looking ahead, the broker believes that Santos is well-placed to deliver solid earnings growth over the 12 months and expects its shares to re-rate higher once it proves that it is on course to achieve its medium-term production targets. Whilst it wouldn’t be my first pick, I think it’s a decent option for investors looking for exposure to the energy sector.

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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. 2019