There are a lot of options for investors on the Australian share market. To narrow things down, I have picked out two ASX shares that have been tipped as buys this month.
Here's what you need to know about them:
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Adore Beauty Group Limited (ASX: ABY)
With the shares of Australia's leading online beauty retailer losing half of their value since their IPO, they could be well worth a closer look today.
That decline has been driven by a selloff of ecommerce shares, weakness in the tech sector, and concerns over the valuations of high PE stocks.
A note out of Morgan Stanley last week reveals that its analysts believe the selloff has created a buying opportunity. The broker has an overweight rating and $5.00 price target on its shares.
While it acknowledges that the next six months could be tough due to the cycling of significant sales growth from a year earlier, it remains positive on the long term. Particularly given how Adore Beauty is the leader in a structural growth market.
ResMed Inc. (ASX: RMD)
Another ASX share to look at is ResMed. It is a sleep treatment-focused medical device company that has been growing at a consistently strong rate for years.
This has been driven by its industry-leading products, growing software business, and the increasing awareness of sleep disorders. Pleasingly, the company is just about to release a new CPAP device, AirSense 11.
It has been tipped as a key driver of growth in the coming years and is expected to lead to users of older devices upgrading for better outcomes.
One broker that is a fan of the company is Credit Suisse. Earlier this week it retained its outperform rating and $29.00 price target on the company's shares.
It has suggested that around a fifth of machines bought between FY 2015 and FY 2019 could be upgraded to the new technology.
