2 ASX shares rated as strong buys by several brokers

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading a broker note about ASX shares on her laptop that is sitting on the table in front of herA woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading a broker note about ASX shares on her laptop that is sitting on the table in front of her

Everyone has an opinion on ASX shares. Some businesses have attracted mixed reviews, while a select number are widely liked by brokers at the moment.

It may be worth paying attention when many experts all think that a business is a buy at the same time.

That level of support could suggest that the ASX share is an obvious buy. Of course, there’s also a chance they’re all wrong at the same time.

With that in mind, these two ASX shares are highly-rated right now.

Tyro Payments Ltd (ASX: TYR)

Tyro Payments describes itself as a “technology-focused” company providing Australian businesses with payment solutions and value-adding banking products. Its aim is to provide simple, flexible, and reliable payment solutions as a merchant acquirer.

At 31 December 2021, it had more than 61,500 Australian merchants using its services.

In the financial year to 17 June, Tyro reports it has processed $32.75 billion of payments for clients – this is a 35% rise year over year.

At least five brokers rate it a buy including Ord Minnett. The broker has a price target of $3 on the ASX share, implying a possible rise of around 250% over the next year.

Ord Minnett points to downloads for apps and active user numbers implying good news for Tyro’s outlook. Winning merchants can help growth in the longer term.

Looking at the FY22 half-year report, Tyro generated revenue growth of 36% to $146 million, with statutory gross profit rising 25% to $68.1 million.

However, it made $2.8 million in earnings before interest, tax, depreciation, and amortisation (EBITDA) — down from $8.5 million – reflecting deferral of annual merchant pricing adjustments and no JobKeeper payments.

Goodman Group (ASX: GMG)

Goodman is a large industrial property business that builds, owns, and manages real estate around the world.

At least four brokers rate this ASX share a buy including Morgan Stanley. The broker’s price target of $25.98 suggests an upside of around 50%.

The broker likes the company’s rental growth as well as its development projects.

Goodman says that as of 31 March 2022, it has $13.4 billion of development work in progress (WIP) across 89 projects. The forecast yield on cost is expected to be 6.5%. Construction costs are increasing globally, but it has delivered increased productivity and value from its sites and development execution.

Goodman also reported 3.7% growth year over year for like-for-like net property income (NPI) through its managed partnerships. Goodman’s occupancy rate across the partnerships was 98.7%.

In the quarterly update, Goodman said:

Tight supply and demand continues to support leasing across our stabilised portfolio and developments, with high occupancy in our markets. The group’s capital position remains sound.

The post 2 ASX shares rated as strong buys by several brokers appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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. has positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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