2 ASX shares that multiple brokers think could be buys

Corporate Travel Management is one of the ASX shares that many brokers like.
The post 2 ASX shares that multiple brokers think could be buys appeared first on The Motley Fool Australia. –

The two ASX shares in this particular article are liked by multiple brokers.

If many brokers like the same business, then it’s worth considering whether it’s an opportunity. But, there’s a chance that all of them are wrong at the same time as well.

These are two ASX shares that lots of brokers like:

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel Management is currently rated as a buy by at least seven brokers, including Citi.

Citi has a price target on the business of $23.65, which suggests a potential upside of approximately 10% over the next 12 months.

The broker believes that Corporate Travel’s balance sheet is in a good position and that the business is at a good value. At 31 March 2021, the ASX share had net cash of $105 million with no debt.

Citi also thinks that its profit could bounce back quickly. The Travel and Transport acquisition could also turn out to be a smart buy with good growth potential.

Corporate Travel says that it’s well positioned for the industry consolidation that may occur.

The ASX share believes that its highly valued delivery mix of expert service, technology and return on investment (ROI) is more relevant in a complex post-COVID environment. It continues to win “significant new clients”.

Corporate Travel is expecting to generate positive underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the fourth quarter on FY21. This will be led by the UK and EU, as well as Australia and New Zealand.

New Zealand is a standout – as of the latest update it was trading at above 160% of its FY19 booking levels.

As a result of the Travel and Transport US acquisition, and the progressed synergies, its overall revenue and EBITDA will be materially higher than FY19 on a pro forma basis after these COVID-19 impacts.

According to Citi, the Corporate Travel Management share price is valued at 44x FY22’s estimated earnings.

Newcrest Mining Limited (ASX: NCM)

Newcrest Mining is one of the largest gold miners on the ASX. It currently has a market capitalisation of around $21 billion according to the ASX.

It’s also rated as a buy by at least seven brokers. One of the brokers that likes Newcrest Mining is Morgans, with a price target of $30.95. That suggests a potential upside of almost 20% over the next 12 months, if Morgans is correct.

The broker pointed to higher silver and copper prices as reasons to be positive about Newcrest Mining. Around a fifth of the ASX share’s revenue is generated by its copper operations.

Newcrests’s latest quarterly report was for the three months to 31 March 2021. It reported lower costs and that it was on track to deliver its FY21 guidance, with growth options advanced.

Its Cadia asset reported a new record in the March 2021 quarter, with its lowest ever quarterly all-in sustaining cost of “negative $160” per ounce. It achieved a all-in sustaining cost margin of $854 per ounce.

However, the ASX share saw its gold production decline 4% compared to the three months to 31 December 2020.

As part of the last quarterly update, Newcrest managing director and CEO Sandeep Biswas said:

As part of our plan to forge an even stronger Newcrest, we continue to progress multiple organic growth options across our gold and copper assets with a number of key project milestones delivered during the period.

The post 2 ASX shares that multiple brokers think could be buys appeared first on The Motley Fool Australia.

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More reading

5 things to watch on the ASX 200 on Friday

Here are the best performing ASX travel shares so far in 2021

5 things to watch on the ASX 200 on Wednesday

ASX 200 Weekly Wrap: ASX makes it 5 out of 5

5 things to watch on the ASX 200 on Monday

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 Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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