Top brokers nominate three ASX shares to buy next week on December 5, 2021

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Last week I saw many broker notes hit the wire again. Below is a summary of three purchase ratings that investors should be aware of.

This is why brokers think investors should buy them next week:

GUD Holdings Limited (ASX: GUD)

According to a note from Citi, the analyst maintained their purchase rating and raised the price target for shares in this diverse product company to $ 15.70. Brokers are finding strategic value in GUD’s plans to acquire AutoPacific Group. Citi states that it will provide exposure to 4×4 growth sectors and geographic diversity. Brokers have significantly upgraded their earnings per share estimates for 2023 and 2024 to reflect the transaction. Therefore, brokers estimate that GUDs are trading at 10 times their 2024 earnings. GUD shares closed the week at $ 11.10.

Another note from Citi reveals that the analyst maintains a purchase rating and a $ 115.00 price target for the mining giant’s stock. Citi continues to prefer Rio Tinto among large miners. This is partly due to exposure to green aluminum. It emphasizes that Rio Tinto’s hydroelectric Canadian smelters emit less than 4 tonnes of CO2 / t, compared to the industry average of 11.5 tonnes. We expect this to provide a competitive advantage over our peers as the market begins to price carbon costs for valuation. The company also notes that it is considering commercializing the ELYSIS smelting process to further reduce carbon strength in the aluminum value chain. Rio Tinto’s share price was $ 95.52 at the closing price on Friday.

Analysts at Morgan Stanley have upgraded the telco’s stock to an overweight rating with a price target of $ 1.45. Brokers believe Superloop is a turnaround story after a period of divestment and balance sheet repair. In addition, the company aims to double its revenue share in the telco market over the next few years. Morgan Stanley believes this is achievable thanks to the fiber network. Superloop shares closed the week at $ 1.26.

Top brokers nominate three ASX shares to buy next week on December 5, 2021

Source link Top brokers nominate three ASX shares to buy next week on December 5, 2021

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