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5 top ASX shares picked by analysts

Recently, global capital group Canaccord Genuity released their annual top Australian stock tips list. The report contains 16 top ASX share picks from various sectors and industries including financials, technology, mining, healthcare and construction.

Here are 5 stocks I have selected from the report that could offer great growth and value in 2020 and beyond.

Bellevue Gold Ltd (ASX: BGL)

According to analysts, Bellevue is the most exciting gold exploration company in Australia. The company’s share price performed strongly in 2019, finishing 30% higher for the year. With 8 diamond rigs on site, analysts are optimistic on the company’s future drilling reports and expect Bellevue to grow its output of high-grade gold output. With myriad potential catalysts, analysts are optimistic on Bellevue in 2020 and have placed a $1.10 target on the company’s share price.

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a global leader in providing sales enablement software and boasts more than 200,000 users in over 52 countries. The company’s flagship Bigtincan Hub is a platform that uses machine learning and artificial intelligence to improve sales execution, training and customer service.

Analysts cited the signing of larger contracts and acquisitions as catalysts that could drive revenue growth for Bigtincan in 2020. In addition, analysts also highlighted the possibility of Bigtincan being a potential acquisition for larger players in the market.

City Chic Collective Ltd (ASX: CCX)

City Chic is a clothing retailer that specialises in plus-size women, boasting over 100 physical stores in Australia and a significant online presence. In the near-term, City Chic plans to building customer loyalty by building a customer-centric operating model and adopting a more efficient supply chain.

Analysts also cite the company’s growing online presence as another catalyst that could drive growth in 2020 and beyond. The acquisition e-commerce assets from Avenue Stores could provide City Chic with better penetration in the US and the potential to grow online sales.

Elmo Software Ltd (ASX: ELO)

ELMO is a cloud-based HR and payroll software company that provides clients with a unified platform to streamline employee administration, recruitment, rostering and payroll. The company operates its cloud-based software under a software-as-a-service recurring revenue model, servicing more than 1,100 companies in Australia and New Zealand.

Anlaysts cited several catalysts that could drive growth for ELMO in 2020 and beyond. These factors include upselling new modules to existing customers, continued customer growth and further geographic expansion through acquisitions. ELMO also increased its research and development in 2019 in a bid to broaden the company’s product offering and increase brand awareness.

Healthia Limited (ASX: HLA)

Healthia is an operator of podiatry and physiotherapy clinics across Australia. Since listing in September 2018, the company has expanded its clinic portfolio from 104 allied health clinics to 133. Analysts from Canaccord cite the highly fragmented health services industry and increasing demand for allied health as key drivers of growth for the company. Potential catalysts for growth in 2020 include accelerated acquisition growth which could drive earnings and expand on the company’s vertical integration capabilities.

Foolish takeaway

Although the analysts from Canaccord provide exceptional and quality research, it is important that investors do their own due diligence before making an investment decision. A prudent strategy would be to keep these companies on a watchlist and wait for positive price action before investing.

You should also add these 5 stocks to your watchlist.

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Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO, Elmo Software, and HEALTHIA FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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