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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:

Costa Group Holdings Ltd (ASX: CGC)

According to a note out of UBS, its analysts have retained their buy rating and $3.25 price target on this horticulture company’s shares. The broker notes that pricing trends in the wholesale market have continued to improve for Costa during January. In light of this, it not only believes that Costa will achieve its 2019 guidance later this month, it feels that the risk of it falling short of its 2020 guidance is diminishing. I think UBS makes some great points, but I would suggest investors wait for its results release before considering an investment.

Nearmap Ltd (ASX: NEA)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating but trimmed the price target on this aerial imagery technology and location data company’s shares to $3.10. According to the note, the broker was disappointed with its guidance revision and has concerns over the stickiness of its product. However, Macquarie remains very positive on its long term outlook and has retained its outperform rating. Though, it has warned that it may take stronger metrics in the second half and positive guidance for FY 2021 to give investor sentiment a meaningful boost. I agree with Macquarie on Nearmap and feel it could be a great long term investment option for patient investors.

ResMed Inc. (ASX: RMD)

Analysts at Credit Suisse have retained their outperform rating and lifted the price target on this sleep treatment-focused medical device company’s shares to $27.00. According to the note, the broker was pleased with its strong performance in the second quarter and notes that it has continued to grow its market share. Credit Suisse appears confident this trend will continue thanks to the strength and diversity of its product portfolio. I think the broker is spot on and would be a buyer of ResMed’s 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 COSTA GRP FPO and Nearmap Ltd. The Motley Fool Australia has recommended ResMed Inc. 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