If you’re looking for a few new additions to your portfolio in September, 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.
Below are two that the broker rates highly in September:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
Morgans’ top pick among the big banks is ANZ. It currently has an add rating and $34.50 price target on the company’s shares. The broker likes the bank due to its attractive valuation and its cost reduction plans.
It explained: “We believe ANZ is the most compelling of the major banks on a valuation basis. We expect ANZ to continue to focus on absolute cost reduction over the medium term. ANZ has de-risked its loan book over recent years – particularly its institutional loan book – such that the quality of its loan book has improved. While ANZ’s Australian home loan book has been growing below system over recent months, we expect a disciplined margin performance from ANZ.”
The ANZ share price is fetching $27.55 on Friday.
BHP Group Ltd (ASX: BHP)
Another ASX share that the broker rates highly in September is BHP. Morgans likes the Big Australian due to its diversification, strong balance sheet, and resilient dividend profile. However, although Morgans feels BHP is one the best share ideas this month, its analysts actually have a hold rating on them. Though, their price target of $45.90 is notably higher than where the mining giant’s shares trade.
Morgans commented: “We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.”
The BHP share price is currently trading at $41.26.
The post 2 of the best ASX share ideas according to this leading broker appeared first on The Motley Fool Australia.
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More reading
- The ANZ (ASX:ANZ) share price is down 4% in a month. Here’s why.
- ASX 200 sinks, BHP and CBA fall
- Why BHP (ASX:BHP) shares have been getting these investors excited
- Leading broker reveals why these 10 big-name shares have been firing up its clients
- The BHP (ASX:BHP) share price is flat in 2021. But how much has the company contributed to the Australian economy?
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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