Morgans names 2 more of the best ASX shares to buy in November

The team at Morgans has been busy again picking out its best ASX share ideas for the month of November.

These are the shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.

The first three shares we looked at can be found here. Read on for the next two:

Santos Ltd (ASX: STO)

Morgans believes that Santos could be a top option for investors looking at the energy sector. Its analysts like the energy producer due to its strong growth prospects and diversified earnings base. The broker said:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development.

Morgans currently has an add rating and $9.40 price target on Santos’ shares.

Westpac Banking Corp (ASX: WBC)

This banking giant has been added to the broker’s best ideas list this month. The broker likes Westpac due to its return on equity improvement potential, cost reduction targets, and attractive dividend yields. It explained:

We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book. Yield including franking is attractive for income-oriented investors, while the ROE improvement should deliver share price growth.

Morgans has an add rating and $26.68 price target on Westpac’s shares.

The post Morgans names 2 more of the best ASX shares to buy in November appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 recommended Westpac Banking Corporation. 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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