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Last week saw a 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:
According to a note out of
UBS, its analysts have retained their
buy rating and lifted their price target on this infant formula company’s shares to NZ$16.00 (A$14.88). The broker expects the company’s daigou sales to recover over the next couple of years. This is expected to be supported by market share gains in the lucrative China market. The a2 Milk share price ended the week at $9.31.
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VanEck Vectors Junior Gold Miners ETF (NYSEARCA:
GDXJ) are set for their quarterly rebalancing on March 19. This upcoming rebalancing event should further reduce the overlap between the two exchange-traded funds.
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RBC analyst Wayne Lam expects the Junior Gold Miners ETF to keep adding companies. He noted that investors have become increasingly focused on the junior end of the GDXJ. Lam believes this means there is an increase in the number of firms that are eligible for inclusion. The GDXJ added almost 30 new junior gold companies last year, including 10 in the fourth quarter.
He also sees an emphasis on gradually reducing the overlap between the GDXJ and the GDX. Lam said the two ETFs overlap by almost 50% in the companies they include and 70% in market capitalization. The market cap overlap has declined from an average of 80% in 2018 and 2019.