The S&P/ASX 200 Index (Index:^AXJO) is extending its bull run today as investors continue to pile back into equities best placed in the post-coronavirus economic recovery.
While value buys are getting increasingly hard to find after the near 30% bounce in the market since the low point of the COVID-19 bear market, there's still a good handful of ASX shares that have room to run higher.
Here are the three latest buy-ideas from top brokers.
Appetite for a big upside
The first is Freedom Foods Group Ltd (ASX: FNP) with Goldman Sachs reiterating its "buy" recommendation on the stock, which also happens to be on its "conviction" list.
This is despite the group's latest warning that its second half earnings before interest, tax, depreciation and amortisation (EBITDA) would take a big hit.
A number of one-off blows from the COVID-19 pandemic is behind the bad news, including the shutdown of its OOH and Foodservice channels, a $4 million bad debt provisioning and a $5 million restructuring charge.
"We are confident the broader strategy anchored around nutritional dairy and plant based beverages remains on track," said the broker.
"We don't see FNP needing to raise capital in the short term despite elevated leverage…[and] expect earnings to grow significantly in FY21."
Goldman's price target on the stock is $5.75 a share, or a 64% upside to the current share price.
Best leverage to rebounding oil price
The dramatic rebound in the oil price may have put a rocket under the Santos Ltd (ASX: STO) share price recently, but Credit Suisse thinks there's more room to zoom.
The commodity bounced from a negative US$30+ a barrel to around US$35 a barrel, and the recovery bodes well for Santos' two growth projects Dorado and Barossa.
Credit Suisse believes the breakeven for Dorado is as low around circa US$30 a barrel and that Santos will give the final green light to start on the Barossa project.
"We see STO in the wake of COVID-19 sell-off as potentially more leveraged to an oil recovery over the coming 18 months vs peers," said the broker.
"Most of STO's growth should readily return as the market recovers, and STO has leverage to long-term oil price assumptions should they return to pre-COVID-19 levels."
Credit Suisse rates the stock as "outperform" with price target of $6.61 a share.
Worth more than originally thought
Finally, Morgan Stanley upgraded its earnings forecasts for auto parts group Bapcor Ltd (ASX: BAP) and reiterated its "overweight" recommendation on the stock.
"During lockdown we estimate industry sales were down >25% yoy in Australia and more like 85% in NZ," said the broker.
"Our numbers previously baked in longer duration closures and a more measured ramp up. We now essentially see that pulled forward resulting in a 32% upgrade to FY21e EPS and 10% in FY22e."
The broker lifted its price target on Bapcor to $7.20 from $6 a share, which suggests a 23% upside for the stock.
