The two ASX shares in this article are rated as impressive buys, according to some of the leading Australian investment experts.
COVID-19 has impacted the economy in a number of ways. Some businesses have seen profits sink. But the reopening of Australian borders and international borders could be beneficial for several ASX shares.
Brokers like the prospects of these two businesses:
Corporate Travel Management Ltd (ASX: CTD)
Corporate Travel says that it’s the world’s fourth-largest global corporate travel manager. Once a full recovery has been completed, it thinks it will be able to generate $810 million of revenue and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $265 million.
It’s rated as a buy by at least five brokers, including Macquarie, which has a price target of $26.70 on the business. That implies a potential upside of around 10% over the next 12 months.
Macquarie rates Corporate Travel as a leading ASX travel share idea, partly thanks to a recovery in passenger volumes of North American travellers. For example, United Airlines said that it expects the 2022 first-quarter capacity to be down 16% to 18% compared to the first quarter of 2019.
In the first half of FY22, Corporate Travel said that it generated an underlying EBITDA of $18.2 million, with positive underlying EBITDA in the first half of FY22 for North America, Europe and ANZ. The HY22 Europe EBITDA was higher than what was achieved in the pre-COVID FY20 half-year result.
Management said that the current environment is helpful for the ASX share to keep winning market share.
Idp Education Ltd (ASX: IEL)
Idp Education describes itself as a global leader in international education services. It helps international students study in English-speaking countries.
It is the co-owner of IELTS, the world’s most popular high-stakes English language test, according to the company. It also operates 11 English language teaching campuses across South East Asia.
Idp Education is rated as a buy by at least three brokers, including Morgan Stanley. This broker has a price target of $40.20, which implies a possible upside of more than 25% over the next 12 months.
Morgan Stanley notes that Idp Education’s earnings are recovering strongly and that the business could keep growing earnings and market share.
In the FY22 first half result, the ASX share said that its total revenue rose by 49% to $396.8 million. English language testing revenue soared 68% to $256.7 million, while multi-destination student placement revenue jumped 68% to $79.6 million.
The company’s EBITDA increased 45% to $96.6 million and net profit after tax (NPAT) grew by 70% to $50.8 million.
Idp Education’s CEO and managing director Andrew Barkla said that the ASX share is strongly positioned in the rebound as it delivers “smarter and increasingly personalised ways to guide people on their study, career and migration journey.”
Mr Barkla also said that the company’s footprint is expanding in key markets, that there are positive global policy settings for the industry and that it’s in a strong position to help even more customers. He said that the company has invested for the long-term and it is seeing the benefits of that through increased demand for its services.
Morgan Stanley thinks that the Idp Education share price is valued at 46x FY23’s estimated earnings.
The post Buy these 2 impressive ASX shares in April 2022: experts appeared first on The Motley Fool Australia.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Idp Education Pty Ltd. The Motley Fool Australia has recommended Corporate Travel Management Limited and Macquarie Group Limited. 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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