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The latest ASX “buy” recommendations from top brokers

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Our share market may be on a backfoot today, but this didn’t stop leading brokers from throwing up their latest ASX buy ideas for the year.

The S&P/ASX 200 Index (Index:^AXJO) steadily lost ground through the morning and slumped 0.5% at the time of writing.

SYD share price target gets a lift

If you are looking to buy the dip, Morgans is recommending you put the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price on your shopping list.

The broker upgraded its price target on the SYD share price to $6.95 from $6.56 a share ahead of the airport operators profit results on 24 February.

“SYD’s intrinsic value is not driven by month-to-month pax volatility, but where earnings stabilise upon recovery from COVID-19 (and theirlong-term growth thereafter) as well as the interest rate environment,” said Morgans.

However, the broker only expects Sydney Airport to restart paying a dividend in 2022 and doesn’t think earnings will significantly exceed FY19 levels until FY24.

But for those willing to overlook the nearer-term volatility, Morgans is recommending the stock as “add”.

Pivotal point prompts BGA share price upgrade

Meanwhile, one of the latest ASX stocks to get upgraded by Bell Potter is the Bega Cheese Ltd (ASX: BGA) share price.

The broker upped its rating on the dairy producer to “buy” from “hold” after it noted two significant industry changes in the past two months that favour the BGA share price.

The first is Bega’s recent $764 million acquisition of Lion Dairy and Drinks with Bega forecasting synergies of around $41 million.

The second is the accounting problems at rival Freedom Foods. Bell Potter thinks these two events could prove to be a “pivotal point” in the competitive landscape and isn’t fully appreciated by the market.

Bell Potter’s 12-month price target on the BGA share price is $6.20 a share.

On a stronger platform

One of Citigroup’s buys for the year is the Hub24 Ltd (ASX: HUB) share price as the investment platform is benefiting from a number of tailwinds.

One tailwind is the exodus of advisers away from vertically integrated platforms and towards smaller operators like Hub24.

Turmoil that’s rocking key rivals, including the AMP Limited (ASX: AMP) share price, is also benefitting the ASX small cap stock.

Citi also highlighted the end of grandfathered commissions as the third driver for the HUB24 share price.

While the broker is worried about the execution risks following Hub24’s three recent acquisitions, it believes these assets (if bedded down right) can give it an edge over rivals.

Citi is recommending the HUB24 share price as a “buy” with a 12-month price target of $25.85 a share.

Where to invest $1,000 right now

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Brendon Lau owns shares of AMP Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 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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