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2 more of the best ASX share ideas according to this top broker

These two ASX shares are highly rated…
The post 2 more of the best ASX share ideas according to this top broker appeared first on The Motley Fool Australia. –

If you’re looking for a few new additions to your portfolio in October, then look no further.

Analysts at Morgans have picked out a number of ASX shares that they class as their best ideas for the month.

The first two I looked at can be found here. Whereas below are two more that the broker rates highly in October:

QBE Insurance Group Ltd (ASX: QBE)

The team at Morgans are very positive on this insurance giant’s shares. This is due to the company’s improving performance and attractive valuation. In respect to the latter, the broker believes the QBE share price is trading on undemanding multiples.

It commented: “We see QBE as likely having positive underlying momentum into next year. QBE has been putting through top-line rate increases of around 9%, which should assist margin expansion into FY22. With QBE’s balance sheet recently reset, pricing tailwinds evident and the stock relatively inexpensive trading on ~12.9x FY22F PE.”

Morgans has an add rating and $13.70 price target on QBE’s shares.

Santos Ltd (ASX: STO)

Another ASX share that Morgans is bullish on is Santos. The energy producer is the broker’s top pick in the sector due to its diversified earnings and its planned merger with Oil Search Ltd (ASX: OSH).

Morgans explained: “We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a continuing broader sector recovery. STO remains our top preference amongst our large-cap energy universe. With early indications supportive of our view that material synergies and enhanced growth plans will result from the OSH merger. While in good shape, we expect STO to continue gaining investor support as it executes on the opportunistic OSH merger.”

The broker currently has an add rating and $8.55 price target on Santos’ shares.

The post 2 more of the best ASX share ideas according to this top broker appeared first on The Motley Fool Australia.

Should you invest $1,000 in Santos right now?

Before you consider Santos, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Santos wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

QBE (ASX:QBE) share price slips following Federal Court judgement
How did the Santos (ASX:STO) share price perform in the last quarter?
ASX 200 energy shares rise amid market sell-off

5 things to watch on the ASX 200 on Monday

2 ASX 200 shares surging this week despite inflation worries

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.

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