Normally on a Thursday I would cover ASX shares that have been rated as sells.
But with the market crashing lower again this week, sell ratings are few and far between right now.
In light of this, I thought I would look for three ASX shares which have been given both buy ratings and price targets that are materially higher than where they trade today.
Here’s what I found:
Afterpay Ltd (ASX: APT)
According to a note out of Citi, its analysts have retained their buy rating and $42.20 price target on this payments company’s shares. Citi has been looking into the sector and was pleased to see positive web traffic and app download data. It believes this reflects strong growth in the buy now pay later space. Outside this, whilst it acknowledges that Afterpay’s investment in growth was greater than expected, it appears confident that it will result in strong long term earnings growth that justifies the spending. This price target implies potential upside of 80% over the next 12 months based on its current share price of $23.43.
BHP Group Ltd (ASX: BHP)
A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $42.00 price target on this mining giant’s shares. According to the note, the broker isn’t concerned by the collapse in oil prices and notes that it is only a small part of its overall valuation for BHP. It appears more focused on booming iron ore prices and the strong boost to its earnings that they will provide over the next couple of years. BHP’s shares are changing hands at $26.45 this afternoon. This means Macquarie’s price target implies potential upside of 59% over the next 12 months, excluding dividends.
Sealink Travel Group Ltd (ASX: SLK)
Analysts at Ord Minnett have retained their buy rating and $5.82 price target on this travel company’s shares. According to the note, the broker was pleased to see SeaLink announce major bus and light rails contracts this week for its Transit Systems business. The broker believes this demonstrates how SeaLink is successfully transforming itself into a transport/utilities company. SeaLink’s shares are trading at $3.70 this afternoon. Ord Minnett’s price target therefore implies potential upside of 57% over the next 12 months.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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.