Top brokers have named Qantas Airways Limited (ASX:QAN) and these ASX shares as buys for next week. Here’s why they are bullish on them…
The post Top brokers name 3 ASX shares to buy next week appeared first on Motley Fool Australia. –
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:
Jumbo Interactive Ltd (ASX: JIN)
According to a note out of Goldman Sachs, its analysts have retained their buy rating and $14.50 price target on this online lottery ticket seller’s shares. The broker believes the next 12 to 24 months could be catalyst rich for its share price. These catalysts include the completion of the LotteryWest agreement, further contract wins domestically and offshore, and a normalisation and improvement of the jackpot sequence. In respect to the latter, it notes that there is a strong correlation between transaction value, revenue growth, and trading multiples with the number of large jackpots. So, given that the expectations for jackpots are low currently, it feels this makes it an attractive time to invest. The Jumbo share price was fetching $13.83 on Friday.
Qantas Airways Limited (ASX: QAN)
Another note out of Goldman Sachs reveals that its analysts have reiterated their buy rating and $6.99 price target on this airline operator’s shares. According to the note, the broker believes that a change of focus from rival Virgin Australia has put Qantas in a strong position domestically as borders reopen. It expects Qantas to take full control of the high-end corporate and premium markets and for Jetstar to take the low-cost, price sensitive leisure end of the market. The Qantas share price ended the week at $5.52.
TechnologyOne Ltd (ASX: TNE)
Analysts at Morgans have retained their add rating and increased the price target on this enterprise software company’s shares to $9.99. The broker made the move following the release of the company’s FY 2020 result last week. It was pleased to see TechnologyOne deliver a better than expected profit. In addition to this, it notes that management’s outlook for FY 2021 is positive. Morgans is forecasting more strong annual recurring revenue (ARR) growth over the next 12 months. The TechnologyOne share price was changing hands for $9.20 at Friday’s close.
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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 and recommends Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive 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.