Here are 3 ASX shares that are rated as buys by brokers. One of those picks rated as a buy is Sydney Airport Holdings Pty Ltd (ASX:SYD).
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The three ASX shares I’m going to mention in this article are rated as ‘buys’ by several brokers.
Broker recommendations give an indication where market analysts think there are buying opportunities for investors. Share prices change all the time, so sometimes a broker could think an ASX share is a buy at one price and perhaps a sell if it were significantly higher.
Investment site MarketIndex regularly collates the ratings of brokers together to assess what the broker community collectively think are opportunities. Just because several brokers think something is a buy doesn’t mean it’s guaranteed to do well, but it may reveal some insights.
With that in mind, here are three ASX shares that brokers like:
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Sydney Airport is the business that operates the Sydney Kingsford Smith Airport. According to the ASX, it has a market capitalisation of $15.65 billion. It’s one of the largest businesses on the ASX despite the COVID-19 difficulties.
Sydney Airport is rated as a buy by at least eight analysts. The Sydney Airport share price has fallen by 34% since the middle of January. Share price falls often heighten broker interest to evaluate if there is value.
The ASX share has been suffering from the lack of travel because of COVID-19 impacts. In its latest monthly traffic update for September 2020 it said that its domestic travel was down 95.7% to 98,000. International passengers were down 97.5% to 34,000. This meant that total passengers compared to September 2019 was down 96.4% to 132,000.
However, the company recently pointed out that travel restrictions between NSW and SA and NSW and the NT were lifted on 1 October and 9 October respectively. One-way quarantine travel from New Zealand to NSW commenced on 16 October.
Brickworks Limited (ASX: BKW)
Brickworks is a construction business that has a variety of brands that produces different building products like bricks, paving, masonry, precast and roofing.
The ASX share has a market capitalisation of around $2.7 billion according to the ASX. It’s rated as a buy by at least six analysts.
Brickworks has recently reported growing monthly order books in a sign of a recovery from the worst of the COVID-19 impacts. The Brickworks share price is up 46% since 22 April 2020.
There are two other elements to the Brickworks business. It owns around 40% of diversified investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).
It also owns 50% of an industrial property trust along with Goodman Group (ASX: GMG). This property trust will soon count Amazon and Coles Group Ltd (ASX: COL) as tenants in Sydney after two huge, advanced distribution warehouses are built on the next couple of years.
Bapcor Ltd (ASX: BAP)
Bapcor is the largest automotive parts business in Australia which operates under a number of different brands including Burson and Autobarn. It also has a number of other specialist wholesale businesses such as electrical components.
The ASX share has a market capitalisation of $2.61 billion according to the ASX. It’s rated as a buy by at least nine analysts.
The Bapcor share price plunged during the March 2020 crash as the number of cars on the road plummeted. But the Bapcor share price has risen 142% since 23 March 2020.
Bapcor shares have been driven higher and it recently gave its FY21 first quarter update. It reported that Burson Trade revenue was up 10% up on the prior corresponding period, whilst total revenue was up 27% with strong retail sales at Autobarn.
Management of Bapcor said that the automotive aftermarket is a resilient industry and historically has performed strongly in difficult economic circumstances. The company’s CEO, Darryl Abotomey said: “We envisage that the impacts of COVID-19, including the expected increase in domestic tourism and increased use of vehicles will continue to drive the Bapcor businesses.”
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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Bapcor, Brickworks, and Washington H. Soul Pattinson and Company Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.