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:
FlexiGroup Limited (ASX: FXL)
According to a note out of UBS, its analysts have upgraded this financial services company’s shares to a buy rating with a $2.30 price target. The broker made the move after assessing FlexiGroup’s new buy now pay later strategy. It likes the new strategy and feels the market is becoming a lot more positive on it. Whilst it isn’t my first pick in the space, I do think it could be a good way for investors to gain exposure to the fast-growing buy now pay later market.
Westpac Banking Corp (ASX: WBC)
Analysts at Morgans have retained their add rating but trimmed the price target on this banking giant’s shares to $30.00. According to the note, the broker believes that the selloff of its shares since the AUSTRAC scandal has been overdone. In addition to this, the broker feels its strong capital position means it won’t have to raise capital in the near future. Overall, it believes this share price weakness is a buying opportunity for investors. I agree with Morgans and would be a buyer of its shares. Especially given the generous dividend yield on offer.
Zip Co Ltd (ASX: Z1P)
Another note out of UBS reveals that its analysts have retained their buy rating and $4.80 price target on this buy now pay later provider’s shares. UBS appears to be pleased with Zip Co’s second quarter update. And while it notes that there was a slight decline in its revenue yield, it believes this is partly due to timing issues relating to the Partpay acquisition. I agree with UBS that Zip Co is a share to buy and feel it is a great long term option for investors.
The post Top brokers name 3 ASX shares to buy next week appeared first on Motley Fool Australia.
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James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has recommended FlexiGroup 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. 2020