Brokers regularly review the ASX share market for where they think the best value is available to investors.
There are a number of different global brokers that provide commentary on ASX shares such as Citi and Credit Suisse.
Sometimes those brokers can have very different thoughts about the same business. One broker might think that BHP Group Ltd (ASX: BHP) shares are a buy and another might think that BHP shares are a sell.
Here are two ASX shares that several brokers can all agree on (though they could all be wrong):
News Corporation (ASX: NWS)
News Corp is rated as a buy by at least four brokers.
This business runs a global media empire with many of the world’s most known publishers including the Wall Street Journal, New York Post, Market Watch, The Sun, The Times (UK), The Australian, The Daily Telegraph (Australia), Herald Sun, the Courier Mail, Vogue Australia and News.com.au. It also owns stakes in other assets like REA Group Limited (ASX: REA), Move, Foxtel, Fox Sports and Harper Collins Publishers.
Brokers like Morgan Stanley are a fan of some of News Corp’s assets like Move. Morgan Stanley puts Move at a valuation of between US$5 billion to US$7 billion, meaning the company’s share of Move Inc is worth between US$7 per share to US$10 per share.
UBS thought that the ASX share’s second quarter was noticeably better than expected, with revenue rising 5.5% and operating earnings growing 40%.
The broker believes the strong result from the ASX share was because of good execution of businesses like Dow Jones and Move.
News Corp has also been in the news recently after reaching a global licensing deal with Google to provide news from its news sites around the world in return for “significant payments” by Google.
UBS currently has a share price target of $32.20 for News Corp.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle is rated as a buy by at least three brokers.
This business invests in a number of investment managers and gives them governance framework, working capital, seed funding and a range of institutional quality and cost effective distribution and other non-investment support services.
Pinnacle believes this model works because it allows investment professionals to be free of unnecessary distractions relating to regulations, compliance and risk, company secretarial and legal counsel, human resources and so on.
The ASX share recently announced its FY21 half-year result which said that net profit after tax increased by 120% to $30.3 million.
Pinnacle’s share of affiliate’s net profit grew 80% to $31.8 million. Aggregate affiliate funds under management (FUM) was $70.5 billion at 31 December 2020. This was up 20% from June 2020, or up 14% year on year.
Aggregate retail FUM of $16.7 billion at 31 December 2020, up 28% from June 2020 and up 17% year on year.
Broker Morgans was impressed by this result and sees a sustainable increase in underlying earnings. It has increased its expectations for the rest of the year to due higher FUM, stronger net inflows expectations.
Morgans has a share price target of $9.40 for the ASX share.
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