2 ASX shares that multiple brokers think could be buys

There are some ASX shares that multiple brokers think could be buys. One example is Pinnacle Investment Management Group Ltd (ASX:PNI).
The post 2 ASX shares that multiple brokers think could be buys appeared first on The Motley Fool Australia. –

Lots of ASX shares are given a rating by brokers that essentially say that stock is a ‘buy’, ‘hold’ or ‘sell’.

If multiple brokers believe that the same business is a buy then that may be an indicator of an opportunity.

These two ASX shares are rated as buys by multiple brokers:

Pinnacle Investment Management Group Ltd (ASX: PNI)

What is Pinnacle? The ASX share says that it holds equity interests in a number of specialist investment managers and provides them with a governance framework, working capital, seed funding, and a comprehensive range of institutional quality and cost effective distribution and other non-investment support services.

The idea is that Pinnacle’s setup allows the managers to focus on the investing and deliver superior investment performance. It only looks to invest in high quality, experienced, dedicated and passionate investment professionals.

Pinnacle is invested in a number of quality investment managers such as Antipodes, Firetrail, Coolabah Capital, Solaris, Spheria, Plato and Hyperion.

The ASX share investment management business has seen continued growth. Affiliate funds under management (FUM) as at 30 April 2021 was up 20.4% to $84.9 billion over the four months, and up 44.6% from 30 June 2020. Total inflows over four months amounted to $9.9 billion.

Most affiliates and strategies continue to deliver performance to expectations or better.

Pinnacle is currently rated as a buy by at least three brokers. One of those is Morgans which has a price target of $11.14. The broker thinks the Pinnacle share price is valued at 30x FY21’s estimated earnings.

Alliance Aviation Services Ltd (ASX: AQZ)

Alliance Aviation claims to be Australia’s leading air charter services operator. It now has dozens of aircraft serving a number of clients, particularly in the fly in, fly out space. It also offers its charter services for group travel with things like tourism, corporate, sporting, entertainment and media, educational or the government sectors.

Some examples include transporting a sports team and their support staff or school children on an educational tour to Canberra.

The company continues to see growth in contract and charter revenue despite COVID-19. The company is expecting growth into FY22.

Whilst revenue only increased 2.3% to $154.8 million in HY21, underlying profit before tax rose 72.3% to $26.7 million, statutory profit before tax rose 116.8% to $33.6 million and operating cashflow rose by 225.3% to $47.5 million.

Alliance believes that the robustness of its business model, the commitment of its staff and the relationships it has with clients ensures it will continue to grow the business in future years. It’s currently rated as a buy by at least three brokers. Morgans has a price target on Alliance of $5.25, it’s valued at 19x FY21’s estimated earnings according to the broker.

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More reading

Alliance (ASX:AQZ) share price edges lower despite positive update
This ASX airline you never heard of could see 40% earnings boost

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

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