2 ASX shares rated as strong buys by brokers

Some ASX shares are not highly rated by brokers. But there are also others that have been rated as buys by multiple brokers.

It’s possible that these stocks with multiple buy ratings are opportunities. But it is also possible that all of those brokers are wrong at the same time.

Here are two ASX shares that brokers really like:

Wagners Holding Company Ltd (ASX: WGN)

Wagners is currently rated as a buy by at least three brokers.

This business is a diversified Australian construction materials and services provider. It says it’s an innovative producer of new generation building materials. It makes cement, concrete, aggregates, new generation composite products and aims to provide products that reduces environmental impacts. It also provides transport services, precast concrete and reinforced concrete.

One of the brokers that likes Wagners is Credit Suisse, which has a $2.50 price target on the business. Credit Suisse believes that the mining sector earnings are helping, as well as improving profit margins.

The ASX share’s FY21 result was better than the broker was expecting, leading it to increase its profit predictions for this year and next year.

Wagers said that its outlook for the second half of the year is good due to a few different reasons.

There’s the ongoing contributions from its major contracts in precast concrete and quarries. Next, there is continued strong performance of its bulk haulage business. There’s also increased activity in the domestic pedestrian infrastructure and bridge division of composite fibre technologies (CFT). The company is working on establishing a USA manufacturing facility for CFT after delays caused by COVID-19. Finally, it’s seeking external investment in its low carbon concrete technology.

Goodman Group (ASX: GMG)

Goodman is currently rated as a buy by at least six brokers.

One of the brokers that likes Goodman is Morgan Stanley, which has a price target of $23 on Goodman.

The broker likes the development potential of Goodman, with its large amounts of development land in Sydney.

Last month the industrial property business released its third quarter update. It said the three months to 31 March 2021 reflected a strong operating performance, underpinned by customer led demand for assets in its chosen markets.

The ASX share explained that changing consumption trends across the physical and digital spaces are fundamentally impacting demand. In response, Goodman is developing new spaces, particularly through multi-storey and higher intensity buildings within its urban locations.

In that quarterly update, Goodman said that it had $52.9 billion of total assets under management (AUM). It achieved 3.3% like for like net property income (NPI) growth in its managed partnerships. There was a 98% occupancy rate across the partnerships.

Goodman also said that it has $9.6 billion of development work in progress (WIP).

At the time, it reaffirmed its FY21 operating profit forecast of $1.2 billion, representing earnings per security (EPS) growth of 12%.

According to Morgan Stanley, the Goodman share price is valued at 28x FY22’s estimated earnings.

The post 2 ASX shares rated as strong buys by brokers 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. 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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