There's value still left to be uncovered in this raging bull market as leading brokers just upgraded these ASX stocks to "buy".
The run-up in the market is fuelled by a better than expected August profit reporting season. The S&P/ASX 200 Index (Index:^AXJO) improved 0.3% in afternoon trade to take its gain for the month to an impressive 3.8%.
Upgrade to buy before gap closes
If this is putting you in a buying sort of mood, the Healius Ltd (ASX: HLS) share price may be one to put on your watchlist. Goldman Sachs upgraded the stock to "buy" as it's trailing its rival Sonic Healthcare Limited (ASX: SHL).
"Whilst HLS is tracking behind SHL in its domestic recovery, the majority of the shortfall is a function of regional exposure," said the broker.
"As and when current restrictions begin to ease in the state of Victoria, we expect momentum in Pathology to improve (we estimate base volumes already tracked around flat in July).
"A resumption of elective surgeries should drive a sharp recovery for Imaging, in-line with peers."
Further, the increase in COVID-19 testing around the country to contain new outbreaks of the pandemic is another big positive for Healius.
Goldman's 12-month price target on the stock is $3.66 a share.
Latest ASX property stock on buy list
Meanwhile, the UBS upgraded the Aventus Group (ASX: AVN) share price to "buy" from "neutral" following its results.
The retail landlord is outperforming its peers as Large Format Retail (LFR) properties are proving to be more resilient to COVID-19's impact compared to conventional malls.
The group posted a 4.2% rise in FY20 funds from operations to $100 million, which is slightly ahead of the $98.5 million UBS was expecting.
Better shopping experience
Don't thumb your nose at the small beat. The results stand in contrast to others in the sector with Scentre Group (ASX: SCG) reporting a $3.6 billion interim net loss. It won't help that the nation's Westfield malls owner is going to war with its tenants over rent.
In contrast, Aventus looks like it's in retail bliss and UBS lifted its price target on the stock to $2.50 from $1.65 a share.
"We think the valuation reflects resilience of income of LFR assets, strong foot traffic, low rents/high cap rates (avg $325m psm/6.7% cap rate) and benefits from changes in household spending patterns," said the broker.
UBS is forecasting a 12-cent dividend from the group in FY21, which will put the stock on a yield of around 5.3%.
