The market looks poised to power on into this new year and leading brokers have come out early to urge investors to buy these ASX stocks.
The S&P/ASX 200 Index (Index:^AXJO) surged 1.2% this morning following a positive lead from Wall Street.
No one knows how long this party will last, but as the market adage goes – “the trend is your friend”.
Buy this ASX wealth manager as equities jump
What’s also good news is that there are still attractively priced ASX stocks to be had. One of these is the Pinnacle Investment Management Group Ltd (ASX: PNI) share price even though its hovering at a more than two-year high.
But the analysts at Macquarie Group Ltd (ASX: MQG) thinks it’s not too late to buy the stock after management posted its latest update.
Pinnacle is leveraged to the share market bull run as this shows up in the performance fees the wealth manager collects.
Bull market boosts fees
The group’s affiliates have crystallised around $44.3 million in such fees in the first half of the financial year. Pinnacle’s share is about $11 million, which is ahead of expectations.
There could be more good news to come. Macquarie noted that such fees are heavily skewed to the second half.
PNI have a high percentage of Affiliates in performance fee territory,” said the broker. “Upside risk exists to our FY21 estimates should performance be sustained.”
Macquarie reiterated its “Outperform” recommendation on the stock with a 12-month price target of $7.96 a share.
Another stocks worth watching is the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price. While shares in the airport operator have rebounded by more than 30% since the COVID‐19 disaster, Morgan Stanley noted that recent data points to further gains for the SYD share price.
The broker was specifically talking about international and domestic seat capacity. It collated the data from several aviation sources.
Seat capacity represents the combined airline reservations for a particular airport.
Industry data points to more upside for SYD share price
“Airport revenue is predominantly a function of passenger (pax) throughput via landing charges, retail, and property earnings,” noted the broker.
“Forward capacity represents the combined airline plans, albeit subject to cancellations.”
Morgan Stanley repeated its “Overweight” recommendation on the stock with a 12-month price target of $6.67 a share.
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Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. 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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