Bell Potter names the ASX shares to buy in 2021

Bell Potter has named Afterpay Ltd (ASX:APT) and these ASX shares as the ones to buy in 2021. Here’s why…
The post Bell Potter names the ASX shares to buy in 2021 appeared first on The Motley Fool Australia. –

asx shares to shine in 2021 represented by the numbers 2021 lit up against night sky

Analysts at Bell Potter have been busy over the holiday period finding the ASX shares that they believe are best placed to have a strong 2021. This includes picks from across a number of different industries.

Today, I am going to pick out three of the numerous ASX shares that the broker as highlighted as buys. They are as follows:

Afterpay Ltd (ASX: APT)

Bell Potter currently has a buy rating and $140.00 price target on this payments company’s shares. It believes there is a significant pipeline of catalysts that will support the company’s growth in the future.

Its analysts explained: “These include further integration with other key e-commerce and payment infrastructure players in the market, further growth in customers and GMV in the US and UK as spending ramps up ahead of Christmas, a healthy Net Transaction Margin (with bad-debts remaining low) to continue into 2021 and commentary on progress made with regard to its international expansion.”

Bell Potter was also pleased with ASIC’s report and recent favourable commentary by the Reserve Bank on the buy now pay later sector.

Flight Centre Travel Group Ltd (ASX: FLT)

Another pick that caught my eye is this travel agent giant. Bell Potter has a buy rating and $19.00 price target on Flight Centre’s shares. It is a fan of the company largely due to its increasingly important corporate business.

The broker explained: “We are most attracted to FLT’s Corporate business which generated 67% of FLT’s profit despite making up only 43% of the Company’s TTV. The company also has a significant presence in the leisure travel market, particularly in Australia. This business – which naturally carries a high fixed cost-base due to its extensive in-store network has undergone a significant restructure since Covid-19 strangled the demand for travel – also provides a value driver which is leveraged to a rebound in international travel.”

While the broker acknowledges that the short term carries a lot of uncertainty, it expects the company to eventually “restore earnings at higher margins with the removal of structural costs and market leadership from FLT’s corporate business to be the key drivers of value over the long-term.”

Macquarie Group Ltd (ASX: MQG)

This investment bank is the broker’s favourite in the banking sector. It has a buy rating and $150.00 price target on its shares.

It commented: “Looking past the COVID-19 noise, this longer term “Cash and Growth” story remains intact. The way MQG’s business model is split across annuity-style and markets-facing activities – respectively 70% and 30% of net profit contribution – strengthens resilience in withstanding market volatility and improves flexibility in being able to capitalise on higher risk-adjusted return opportunities when operating conditions normalise.”

The broker also likes Macquarie due to its strong capital adequacy. This is being underpinned by its strong organic capital generation and efficient asset utilisation.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Bell Potter names the ASX shares to buy in 2021 appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!