Newcrest is one of the ASX shares that is rated as a buy by brokers.
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There is a group of ASX shares that have been rated as buys by multiple brokers.
These brokers are always on the lookout for new opportunities that could be good value. Share prices change all the time, so it can change whether a business is possibly a buy or not.
If many brokers all like the same stock then it could be an opportunity to consider. However, it is possible that all of those brokers are simultaneously wrong.
With that in mind, here are two ideas:
Newcrest Mining Limited (ASX: NCM)
Newcrest is one of the world’s biggest gold miners. It is currently rated as a buy by at least five brokers.
One of the brokers that currently likes Newcrest Mining is Morgan Stanley, with a price target of $30. The broker likes the company’s recent announcement about its investing and growth plans.
The ASX share said there are attractive economics and significant value creation across its plans for Cadia and Havieron in Australia, Red Chris in Canada and Lihir in Papua New Guinea.
All four organic growth options have the ability to deliver internal rate of returns of at least 16%. It’s also projected to reduce the group all-in sustaining cost (AISC) by more than 50% from the current levels by FY30.
There is also “significant” upside potential with growth optionality beyond the stage 1 project parameters as well as “exploration upside”.
It’s expecting 37% growth in expected copper production by FY30, sourced exclusive from tier 1 jurisdictions, like Australia.
Morgan Stanley’s projection, puts the Newcrest share price at 24x FY22’s estimated earnings.
Telstra Corporation Ltd (ASX: TLS)
The telco giant is another ASX share that is highly rated by brokers at the moment. It’s currently rated as a buy by at least four brokers.
One of the brokers that likes Telstra is Morgan Stanley, which has a price target of $4.50 on the business.
Morgan Stanley points to the financial targets that Telstra has released some financial information about its T25 strategy.
It said that the 5G network coverage is going to be extended to 95% of the population, with regional coverage to be expanded with 100,000sq km of new 4G and 5G coverage.
To 2025, the ASX share is targeting a compound annual growth rate of mid-single digit underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and a high-teens growth rate for underlying earnings per share (EPS).
Telstra is also targeting another $500 million of net fixed cost reductions from FY23 to FY25.
The company also said that it’s looking to maximise the fully franked dividends for shareholders, whilst seeking to grow them over time.
Using Morgan Stanley’s earnings estimates, the Telstra share price is valued at 28x FY22’s estimated earnings.
Should you invest $1,000 in Telstra right now?
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Motley Fool contributor Tristan Harrison 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 owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.