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Last week, a number of broker notes hit the wires again. Three buy ratings that investors might want to know are summarized below.
Here’s why brokers think investors should buy them next week:
AGL Energy Limited (ASX: AGL)
According to a note from Credit Suisse, its analysts have raised shares of this energy company to an outperform rating with a price target of $8.20. This follows the announcement of the company’s plan to phase out coal 10 years ahead of schedule in 2035. Credit Suisse appears to be in favor of the decision. And while he expects this to lead to a decent increase in capital spending, the broker believes AGL’s free cash flow will remain strong. AGL’s stock price ended the week at $6.84.
BHP Group Ltd. (ASX: BHP)
A note from Macquarie reveals that its analysts kept their outperform rating and raised their price target on the mining giant’s shares to $44.00. Macquarie has raised its thermal coal price forecast to reflect supply constraints and global energy security risks. This led the broker to increase its earnings estimates for BHP by around 5% per year until fiscal 2026. BHP’s stock price reached $38.52 at Friday’s close.
Brickworks Limited (ASX: BKW)
Morgans analysts kept their added rating and raised their price target on the building products company’s stock to $24.00. According to the memo, Morgans was impressed with Brickworks’ annual results, which beat consensus estimates by about 10%. In addition, the broker points out that its shares are showing as cheap. This is based on the current discount to the inferred NTA and the pipeline of accretive projects that will potentially be completed over the next few years. Brickworks stock price ended the week at $21.54.