The sharp and sudden market sell-off late last week is already a distant memory and those looking for opportunities may be interested in looking at the three latest ASX broker buy recommendations.
The S&P/ASX 200 Index (Index:^AXJO) added to yesterday's gain by jumping 1.5% on Tuesday. It has nearly recovered all of the losses triggered by the GameStop saga.
The fact that the index bounced neatly and strongly from its support of around 6,000 points will encourage the bulls to keep the rally going.
It isn't too late the join the party and brokers have just put forward three ASX "buy" ideas for your portfolio.
Brokers pushing this bullish bet
The first is the Aristocrat Leisure Limited (ASX: ALL) share price. Most brokers already like the stock but the latest US survey of gaming machines is giving them more reason to be bullish.
Credit Suisse reiterated its "outperform" recommendation on the ALL share price today after the Eilers‐Fantini December quarter slot survey was released.
The survey covered around 35% of the North America slot machine market during the period.
Upside risk to this ASX broker "buy" recommendation
The broker was modelling 1,000 net additions to Aristocrat's install base for 1HFY21, which ends in March.
"Grossing up the Survey participation to reflect the entire market, it seems ALL is running ahead of our half‐year projection," said the broker.
"However, the Survey bias tends to be optimistic so we rather conclude the Survey supports our estimate."
Credit Suisse's 12-month price target on the ALL share price is $34.50 a share.
Stronger for longer
Meanwhile, industry data is also fuelling the positive sentiment towards the Elders Ltd (ASX: ELD) share price.
Citigroup noted that the Meat and Livestock Australia's (MLA) latest sheep and lamb industry projections suggest the strong lamb prices observed in January could persist through this calendar year.
"This outlook presents further upside risk to our lamb price expectations; with the ESTLI currently ~9% above our CY21 forecast of 781c/kg cwt," said Citi.
"We continue to see upside risk to our livestock agency earnings more generally (~27% of group FY20 gross profit) in FY21e from current conditions in both the cattle and sheep market."
The broker repeated its "buy" rating on the ELD share price with a 12-month price target of $13 a share.
Recovery not priced into this ASX stock
Finally, Goldman Sachs restated its "buy" call on the Emeco Holdings Limited (ASX: EHL) share price ahead of its results.
The broker is expecting management to confirm that trading conditions are improving – notably continued strong conditions in its growing hard rock exposure and signs of stabilisation in coal.
"EHL shares remain -55% below pre-covid levels despite improving conditions, with the stock trading at 2.8x our FY22E EV/EBITDA," said Goldman.
"We remain positive on EHL's risk-reward profile from here against a healthy commodities backdrop."
Emeco will hand in its half year earnings report card next Tuesday. Goldman's 12-month price target on the EHL share price is $1.20 a share.