Here’s why this leading broker likes these All Ords shares…
The post 2 All Ords shares this broker rates as buys appeared first on The Motley Fool Australia. –
There are a lot of shares to choose from on the All Ordinaries index. To help narrow things down, I have picked out two that come highly recommended.
Here’s why these could be All Ords shares to buy:
Integral Diagnostics Ltd (ASX: IDX)
The first All Ords share to look at is Integral Diagnostics. Integral Diagnostics is one of the largest diagnostic imaging providers in Australia. It provides imaging services through its six brands. These are Lake Imaging, South Coast Radiology, Global Diagnostics, Imaging Queensland, SRG Radiology, and Trinity MRI.
It has been a strong performer in FY 2021. For example, during the first half it reported a 29.5% increase in revenue to $170.7 million and a 61.1% jump in net profit after tax to $23.2 million.
The good news is that analysts at Goldman Sachs are confident there will be further solid growth in the years to come.
It said: “We believe this medical imaging service provider is a well-run business in an attractive industry, with a relatively secure volume profile of mid/high single digit growth, and a clear path for further growth through brownfield and M&A activities. In our view, IDX is well-positioned to benefit from these key drivers:”
Goldman has a buy rating and $5.50 price target on the company’s shares.
Lifestyle Communities Limited (ASX: LIC)
Another All Ords share to look at is Lifestyle Communities. It builds, owns, and operates land lease communities which provide affordable housing options to Australians over 50. Its land lease model allows working, semi-retired, and retired people to downsize their family home to free up equity in retirement whilst enjoying resort style living.
Goldman Sachs is also confident in Lifestyle Communities’ growth prospects. This is thanks to strengthening demand for land lease options from Australia’s ageing population.
It said: “We see strengthening demand for Land Lease as the aging population looks to enhance retirement by releasing equity from the family home. Our penetration analysis suggests the current 2-3% of people over 65 living in a land lease community could rise to 5% over the medium term; coupled with the absolute increase in over 65s population, LIC is well-placed to grow its occupied lots at a rate of c.15% p.a.”
Goldman has a conviction buy rating and $16.50 price target on the company’s shares.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Integral Diagnostics Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.