Analysts rate these ASX shares highly…
The post 2 ASX shares analysts rate as buys in January appeared first on The Motley Fool Australia. –
There are a lot of options for investors to choose from on the Australian share market.
To narrow things down, I’ve taken a look at which ASX shares analysts are recommending investors buy right now.
Two that have been given buy ratings are listed below. Here’s what you need to know about them:
Santos Ltd (ASX: STO)
If you’re happy to invest in the resources sector then you might want consider energy producer Santos, which has recently completed its merger with Oil Search.
Morgans is a fan of Santos and sees significant upside for its shares at the current level. The broker has an add rating and $8.65 price target. And while this is notably higher than the latest Santos share price of $6.06, the broker feels it is still conservative.
The broker commented: “We view our target price as conservative, with a case for value upside from de-risking of growth projects and securing of synergies. The merger leaves STO well positioned to control its own future in increasingly difficult ESG-driven debt and equity markets. We maintain our Add rating.”
TechnologyOne Ltd (ASX: TNE)
This enterprise resource planning software provider could be a share to buy in 2022 according to the team at Bell Potter.
The broker likes TechnologyOne due to its belief that it can grow its earnings at a solid rate for many years as it continues to transition to a software-as-a-service business. Bell Potter has a buy rating and $15.00 price target on the company’s shares.
It commented: “The key competitive advantage of the company is it has developed a fully integrated SaaS solution of its software and is now switching customers to this solution. The migration is now >50% complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to re-rate to that of a pure SaaS company.”
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*Returns as of August 16th 2021
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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.