Leading broker just upgraded these ASX shares to “buy”

ASX investors wanting to make the most of the market uncertainty might be interested to know that JPMorgan just upgraded…
The post Leading broker just upgraded these ASX shares to “buy” appeared first on The Motley Fool Australia. –

ASX investors wanting to make the most of the market uncertainty might be interested to know that JPMorgan just upgraded two ASX shares to “buy”.

The S&P/ASX 200 Index (Index:^AXJO) has been swinging between inflation fears and an improving economic outlook of late.

I won’t be surprised to see ASX shares to enter a period of consolidation before heading higher later this year.

ASX shares upgraded to buy during the market volatility

If you are looking for what you can buy during this dip, the Orocobre Limited (ASX: ORE) share price could be one to watch.

This is because JPMorgan upgraded the lithium miner to “overweight” as it mulls its merger with the Galaxy Resources Limited (ASX: GXY) share price.

Big upside for the Orocobre share price

The marriage will create the world’s fifth largest lithium producer if the combined group’s 2030 production forecasts are used as the benchmark.

“The combination of ORE and GXY presents a unique, pure lithium producer with a diversified, low carbon, strategic and growing production base,” said JPMorgan.

“Assuming timely deal completion and including Olaroz Stage 3 in our valuation our ORE PT [price target] is $7.15/share.”

Upgraded to buy on the dip

Another that the broker upgraded to “overweight” from “neutral” is the Credit Corp Group Limited (ASX: CCP) share price.

The Credit Corp share price has underperformed the ASX Small Ordinaries Index by around 20% since March this year.

The underperformance was driven by worries that the Purchase Debt Ledger (PDL) industry in Australia and the US was not recovering as quickly as the market would like.

Set for the rebound

This is in part due to measures taken by both governments to protect consumers from debt collectors during COVID-19.

But recent updates by Credit Corp and its rivals show there’s light at the end of the tunnel. This may be particularly so for the US.

“As forbearance measures in the US are expected to progressively roll-off in the coming months, CCP remains well positioned to capitalised on a recovery in industry PDL supply,” said JPMorgan.

“With a balance sheet that is net cash and access to credit facilities with duration now extending to 2024 and 2025, the business has access to ~A$400m of liquidity to deploy.”

The broker’s 12-month price target on the Credit Corp share price is $31.50 a share.

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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.

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More reading

Why these ASX lithium shares are down for a 5th straight session?

The ASX healthcare giant ready to explode: fundie

ASX shares that will benefit from the upcoming index changes

How the Pilbara (ASX: PLS) share price outshone its lithium peers today
These could be the next up and coming ASX lithium shares

The post Leading broker just upgraded these ASX shares to “buy” appeared first on The Motley Fool Australia.

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