3 stellar ASX shares to buy in January

Pushpay Holdings Group Ltd (ASX:PPH) and these stellar ASX shares could be among the best options for investors in January…ac

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If you're looking to make some new investments in January, then you might want to take a look at the ASX shares listed below.

Here's why these three ASX shares have been named as buys:

Appen Ltd (ASX: APX)

The first share to look at is Appen. It is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). Appen's team of over one million contractors prepare or create the data for the machine learning models of some of the largest tech companies. This has previously included Apple, with its virtual assistant, Siri.

While trading conditions are tough because of the pandemic, analysts at Macquarie remain positive on Appen and have an outperform rating and $43.00 price target on its shares. The broker appears confident the company will bounce back once the pandemic passes. They also believe the company is well-placed to benefit over the long term from the AI tailwind.

IDP Education Ltd (ASX: IEL)

Another share to look at is IDP Education. It is a provider of international student placement and English language testing services.

While the pandemic has hit the company very hard, it has a very strong balance sheet and looks well-placed to ride out the storm. This is something that many of its competitors have struggled to do. As a result, the company has been tipped to come out of the crisis in an even stronger position. This could lead to an acceleration in its growth once the pandemic passes.

Analysts at Morgans like the company and have an add rating and $25.09 price target on its shares. The broker believes the company is well-placed for growth once trading conditions return to normal.

Pushpay Holdings Group Ltd (ASX: PPH)

Pushpay is a leading donor management and community engagement platform provider for the faith sector.

While this may be a niche market, it certainly is a very lucrative one. The company is aiming to win a 50% share of the medium to large US church market in the future, which represents a US$1 billion opportunity. Given that FY 2020's revenue came in at US$129.8 million (up 32% year on year) , this shows just how long a runway for growth it has over the 2020s.

Due to the quality of its platform and last year's US$87.5 million acquisition of church management system provider Church Community Builder, management appears optimistic it will get there.

One broker that also appears confident is Goldman Sachs. It has a conviction buy rating and ~$2.59 price target on its shares.

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 Appen Ltd, Idp Education Pty Ltd, and PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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