Our market continues to build on gains for 2021 and those looking for new buying opportunities will want to read on.
Brokers have initiated research coverage on two new ASX stocks that have recently hit the bourse.
The Ansarada Group Ltd (ASX: AND) share price is the latest “buy” rated stock from Moelis Australia. The investment bank started covering the governance platform provider following its reverse takeover of The Doc Yard Ltd (ASX: TDY).
The latest high-growth ASX IT stock to buy
The cloud-based platform allows companies to securely share sensitive documents, such as for board meetings, takeovers and audits.
This means the AND share price should benefit from the expected rebound in mergers and acquisitions (M&As) in 2021.
If you believe that high-growth tech stocks will keep delivering this year, then Ansarada might be a good one for your watchlist.
Multiple catalysts to drive the Ansarada share price
There are other reasons why Moelis likes the stock. This includes good subscription growth potential and expected positive earnings before interest, tax, depreciation and amortisation (EBITDA) this financial year.
“Overall, we expect AND to benefit from the global trend of increased regulation on security and data management and exhibit strong growth over CY21 as M&A markets recover and revenue diversifies across new & enhanced platform use cases,” said Moelis.
Moelis’ 12-month price target on the stock is $1.83 a share.
Better than forecasts growth
Another new entry to the ASX that is worth watching is the Liberty Financial Group Pty Ltd (ASX: LFG) share price.
The analysts at Macquarie Group Ltd (ASX: MQG) initiated coverage on the recently listed financial services group with an “outperform” recommendation.
“Better-than-expected margins, book growth and asset quality vs Prospectus assumptions should support earnings ~15% above Prospectus NPATA, in our view,” said the broker.
“Liberty is benefiting from wider-than-anticipated net interest margins, with BBSW (1mth) ~9bps below the RBA cash rate vs a long-term ~20bps premium.”
Winning by a big margin
A modest 10 basis point (0.1 percentage point) change in margins will have a 6.3 percentage point impact on net profit before amortisation of acquired intangible assets (NPATA).
“Liberty should remain a leader in the non-bank sector, with its industry position supported by well-developed capital management capability, high level of funding stability and cost efficiency,” added Macquarie.
“Interestingly, Liberty is the only Australian non-bank finance company with a public investment-grade issuer rating.”
The broker’s 12-month price target on the LFG share price is $8.27 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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