There are thousands of shares for investors to choose from on the Australian share market.
This can make it very daunting when you’re trying to construct a balanced portfolio of 10 or so shares.
To help you on your way, I have picked out three ASX shares that come highly rated. Here’s what you need to know about them:
Damstra Holdings Ltd (ASX: DTC)
The first share to look at is Damstra. It is a growing integrated workplace management solutions provider. Damstra’s cloud-based workplace management platform is used across the globe to track, manage, and protect workers and business assets.
Demand was so strong in FY 2020 from both new and existing costumers that Damstra delivered a 47% increase in revenue to $23.5 million. Pleasingly, this positive form has continued in FY 2021, with the company reporting record first quarter revenue, cash receipts, and operating cash flow.
Morgan Stanley has been impressed with its performance and has put an overweight and $2.00 price target on the company’s shares.
Goodman Group (ASX: GMG)
Another share to look at is Goodman Group. It is an integrated commercial and industrial property group which has been growing at a solid rate over the past few years. This has been driven by its focus on high-quality properties in key locations that management believes will deliver sustainable returns for investors.
These include logistics and warehouse facilities which have exposure to the growing ecommerce market through relationships with Amazon, DHL, and Walmart.
Analysts at Macquarie have been impressed with Goodman’s performance so far in FY 2021 and believe it is well placed for growth in the coming years. Its analysts have an outperform rating and $19.86 price target on its shares.
Kogan.com Ltd (ASX: KGN)
A final share to look at is Kogan. It is a growing ecommerce company and Australia’s equivalent to Amazon.
While Kogan has been performing positively in recent years, its growth went up a gear in 2020 after the pandemic accelerated the shift to online shopping. This led to a material jump in customer, sales, and earnings growth in FY 2020 and has continued into the new financial year.
But management isn’t settling for that. It undertook a capital raising earlier this year to raise funds to make value accretive acquisitions. Kogan has just acquired New Zealand based e-commerce company Mighty Ape for NZ$120 million and previously acquired furniture retailer Matt Blatt for a more modest $4.4 million.
Credit Suisse is a fan of Kogan. It recently put an outperform rating and $20.60 price target on its shares.
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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 and recommends Damstra Holdings Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd and Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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