Big brokers think these 5 ASX shares can outperform the market

Mineral Resources (ASX: MIN) and 3P Learning (ASX: 3PL) are among 5 ASX shares that brokers say could outperform the market today
The post Big brokers think these 5 ASX shares can outperform the market appeared first on The Motley Fool Australia. –

hands holding 5 stars

Big brokers have run the ruler on ASX shares that could beat the market. Here are the ones that have been rated as a buy or buy equivalent on Tuesday.

ASX shares that could outperform the market 

3P Learning Ltd (ASX: 3PL) 

3P Learning announced on Monday that it will acquire 100% of Blake eLearning to emerge as a leading educational technology platform. 

Morgan Stanley views this as a positive transaction in terms of scale, product mix, customer mix and potential for meaningful revenue and cost synergies. 

The broker’s commentary does note some slight caution towards Blake eLearning, which seems to be cycling a period of accelerated COVID-19 sign-up. This could result in a higher churn rate and flatter growth in the near term. 

Morgan Stanley maintained its overweight rating and increased its target price from $1.50 to $1.60. 3P Learning shares are currently trading at $1.30. 

Aristocrat Leisure Ltd (ASX: ALL) 

Aristocrat Leisure has arguably received the most broker updates of all ASX shares this month. This includes updates from April 7, April 9 and April 13. The big broker narrative typically highlights a bounce back in its core casino machines business and acceleration in its digital gaming revenues. 

On Tuesday, Credit Suisse points out that Apple Inc (NASDAQ: AAPL) was named the defendant in six lawsuits filed in United States federal courts alleging casino-style app games that allow users to purchase virtual coins, and pay money to win more playing time, constitutes unlawful gambling in certain US states.

The broker believes that Apple may have to restrict or alter its distribution of mobile gambling games. 

Overall, Credit Suisse remains bullish on Aristocrat shares, retaining an outperform rating and $38.00 target price. The Aristocrat share price is currently fetching $36.14, within arm’s reach of its all-time record high of $38.00. 

BlueScope Steel Limited (ASX: BSL) 

Macquarie upgraded its earnings estimates in the second half to $919.4 million. The broker believes a rally in steel prices have been underpinned by favourable market dynamics including a consolidating global steel industry, high utilisation and strong demand. 

Macquarie’s commentary notes that there are risks associated with a potential rollover of steel prices, but believes strong earnings momentum can continue in the near term.

An outperform rating was retained and target price raised from $21.65 to $23.50. BlueScope shares are currently trading at $20.30. 

Mach7 Technologies Ltd (ASX: M7T) 

The Mach7 share price jumped as much as 14% yesterday after the company announced record quarterly results. After assessing the third-quarter results, Morgan Stanley was pleased with its $12.8 million in new sales orders for the quarter from both new and existing customers. This represents a significant uplift from the $7.6 million in the second quarter. 

The broker made no changes to its forecasts, retaining an add rating with a $1.68 target price. Mach7 shares have retreated 2.55% on Tuesday to $1.34. 

Mineral Resources Limited (ASX: MIN) 

Macquarie upgraded a number of ASX lithium shares on Tuesday including heavyweights Galaxy Resources Limited (ASX: GXY), Orocobre Ltd (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS)

The broker lifted its lithium price outlook and expects Mineral Resources’ to begin producing lithium hydroxide in FY22. Macquarie believes that buoyant iron ore prices will support Mineral Resources in the near term while its entry into lithium production will drive medium to long term value. 

Macquarie rates Mineral Resources as outperform and lifted its target price from $50 to $61. Mineral Resources shares are currently trading at $40.85. 

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 February 15th 2021

More reading

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Big brokers think these 5 ASX shares can outperform the market 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!