If you have room to add a few ASX shares to your portfolio in March, then you may want to check out the ones listed below.
These ASX shares are currently rated as buys by the team at Bell Potter and have been named as top picks for 2022. They are as follows:
A2 Milk Company Ltd (ASX: A2M)
Bell Potter is one of a very small number of brokers that remain bullish on this struggling infant formula company. This is due largely to its belief that A2 Milk’s earnings will rebound strongly once trading conditions normalise. The broker has a buy rating and $7.70 price target on its shares.
It commented: “We see the scope for EPS to double by FY26e, if A2M can execute on the China offline expansion strategy, while recovering 50% of the lost sales (from FY20-21) in English label IMF. The catalyst to regaining lost English label sales is likely to be boarder reopening and the return of international students. Exiting the loss making US assets or navigating a turnaround at the MVM asset would likely accelerate this turnaround. We do not see the current share price as reflecting this potential.”
TechnologyOne Ltd (ASX: TNE)
Another ASX share that the broker rates highly is TechnologyOne. Its analysts currently have a buy rating and $15.00 price target on the enterprise software company. Bell Potter likes TechnologyOne due to its shift to a SaaS-focused business, which it expects to underpin greater recurring revenues and stronger margins.
The broker explained: “The key competitive advantage of the company is it has developed a fully integrated SaaS solution of its software and is now switching customers to this solution. The migration is now >50% complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to re-rate to that of a pure SaaS company.”
The post Why this top broker rates these ASX shares as buys in March appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
More reading
- What’s next for the A2 Milk (ASX:A2M) share price?
- Why the A2 Milk (ASX:A2M) share price can climb 40%: broker
- Top brokers name 3 ASX shares to buy next week
- Leading brokers name 3 ASX shares to sell today
- ‘The sleeper has awakened’: Top broker gives its verdict on the A2 Milk (ASX:A2M) share price
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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/utqM0eS
Leave a Reply