Australia's leading brokers are always on the lookout for the best ASX shares to buy.
Brokers don't always get it right, but they are often on the money. They regularly update their view on different businesses as share prices change or when that ASX share releases an important announcement, such as a result.
These three ASX shares have been rated as buys recently:
Volpara Health Technologies Ltd (ASX: VHT)
Volpara has been rated as a buy by Morgans as it highlighted the benefits of the CRA Health purchase and the benefit of growth of its average revenue per user (ARPU). The share price target is $1.94.
A few weeks ago, Volpara announced that it was acquiring Boston-based CRA Health for US$18 million with another potential US$4 million payable based on meeting certain targets.
Volpara explained that CRA is profitable, with annual recurring revenue (ARR) of over US$4 million, average revenue per user (ARPU) of around US$1.70 and coverage of around 6% of US breast screenings. CRA software is integrated with major electronic health record and genetics companies.
This acquisition increases Volpara's market share to over 30%. It also increased the group ARPU to over US$1.40.
A couple of weeks ago, Volpara revealed that CRA Health had won a contract that covered the provision of breast cancer risk scores to a large Indiana-based organisation that has sites across more than 20 states and runs a major electronic health record system. It was the biggest in Volpara's history.
BWX Ltd (ASX: BWX)
Natural beauty business BWX has been rated as a buy by the broker Citi. It has a price target of $5.35.
Citi noted that the company is seeing less engagement on social media recently, but if it can increase that with users then it could help growth in the future. But, the natural beauty business is focusing its efforts on the domestic retail sector – this may lead to a better payoff for the company.
In the FY21 half-year result the ASX share reported net revenue grew by 0.6% to $84.5 million, or 3.4% in constant currency terms. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up by 1.4% to $11.7 million.
BWX said that the Chemist Warehouse equity partnership will continue to fuel growth of Sukin, Andalou Naturals and Mineral Fusion in Australia and international markets. The Woolworths Group Ltd (ASX: WOW) partnership will see Sukin launched in 930 Woolworths stores. It has also achieved distribution gains in North American retailers including in Walmart (Canada) and Mineral Fusion in Wholefood Markets.
Clover Corporation Limited (ASX: CLV)
Clover is a business that aims to deliver science-based bioactives into products such as infant formula.
The ASX share is rated as a buy by the broker Ord Minnett, which has a price target of $2.37 for the ASX share.
Clover is suffering from reduced demand for infant formula, however it is also staying on top of its costs. Whilst demand is low, the broker pointed out that it has a good customer base that will lead to potential upside when daigou and other demand returns.
In the recently-released FY21 half-year result it showed a 21.7% decrease in net sales revenue to $29.4 million and a 45.8% reduction in net profit after tax (NPAT) to $2.5 million.
Clover is still confident about the future, saying that the fundamentals of the business remain strong with opportunities for growth across markets and segments currently curtailed by COVID-19.
It's expecting FY21 revenue to be in the range of $60 million to $70 million.
