The path of least resistance is up for our market and top brokers have just boosted these ASX shares to "buy".
The S&P/ASX 200 Index (Index:^AXJO) rallied 0.6% in after lunch trade and is closing in on its record high from just before the COVID-19 market meltdown.
Many experts have a bullish 2021 outlook for ASX shares and here are three that just got put on the broker buy list.
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Supply deficit boosts Sandfire share price to buy
The first is the Sandfire Resources Ltd (ASX: SFR) share price. Goldman Sachs upgraded the copper miner to "buy" from "neutral" as it revised up its copper price forecasts.
The broker reckons the red metal will jump by a third from the current spot price to US$5.39 a pound next year. It also lifted its long-term price forecast by 24% to US$4 a pound.
Goldman believes copper and aluminium are facing a supply deficit over the long term. Miners cannot keep up with demand from renewables – a problem made worse by a lack of investment in new mining projects.
The broker's 12-month price target on the Sandfire share price is $7.60 a share.
The ASX share zipping higher
Another ASX share that got an upgrade is the Zip Co Ltd (ASX: Z1P) share price. Citigroup increased its rating on the buy now, pay later (BNPL) company to "buy" from "neutral".
A better-than-expected update from Zip Co's US business, Quadpay, prompted the bullish turn.
"The key highlight from Zip's 3Q update was stronger than expected volume growth, with Quadpay TTV +31% ahead of CitiE and up +14% qoq on a seasonally strong Dec qtr," said Citi.
"With Quadpay accelerating and continuing to beat our expectations, we upgrade Zip to Buy."
The broker's 12-month price target on the Zip Co share price is $11.30 a share.
The ASX share upgraded on potential earnings surprise
Meanwhile, the newest ASX share to make it on Jarden's buy list is the Computershare Ltd (ASX: CPU) share price.
The broker initiated coverage on the share registry services group and called it an "underappreciated macro recovery play".
While the Computershare share price has bounced since the onset of COVID-19, investors are underestimating the pace of its earnings recovery, particularly following the acquisition of Wells Fargo's US Corporate Trust Services (CTS) business.
"Annual cost synergies of $80m should support proforma FY21E EPS accretion of 15%+ and a 9% ROIC (emerges over 5 yrs)," said Jarden.
"However, leverage to rising interest rates could boost EPS accretion and ROIC to 25% by FY25E."
The broker's 12-month price target on the Computershare share price is $18.65 a share.
