With winter upon us and the end of the financial year approaching, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to Buy in June.
Here is what the team have come up with…
Bernd Struben: Commonwealth Bank of Australia (ASX: CBA)
My top ASX share pick for June is Commonwealth Bank for both its potential capital and dividend growth. The CBA share price has gained around 57% over the past 12 months. In fact, it breached the $100 mark for the first time ever just last week. And Kardinia Capital portfolio manager Kristiaan Rehder believes there’s more to come.
Rehder says that asset growth is looking very favourable for CBA in the current market. The bank has a tier-one core capitalisation ratio of around 13%. He calculates that works out to some $10 billion of surplus capital set to benefit shareholders either via dividends or buybacks.
Based on its share price of $99.72 at the time of writing, CBA has a market capitalisation of around $177 billion. It pays a trailing dividend yield of 2.5%, fully franked.
Motley Fool contributor Bernd Struben does not own shares of Commonwealth Bank of Australia.
Tristan Harrison: Pushpay Holdings Ltd (ASX: PPH)
The electronic donation business continues to experience an upswing in profit margins. In FY21, its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) margin increased from 22% to 34%.
Pushpay is expecting further operating leverage as it grows revenue whilst expense growth is limited. The business is also expecting to grow the number of customers using its donor management system.
It’s also looking to grow in the Catholic church segment over the next few years with an initial investment of between $6 million to $8 million in FY22. Pushpay is targeting a market share of over 25% of Catholic parishes.
Motley Fool contributor Tristan Harrison does not own shares of Pushpay Holdings Ltd.
Mitchell Lawler: Catapult Group International Ltd (ASX: CAT)
The past year has been a challenging environment for sports organisations and companies to navigate. As borders closed, and health concerns mounted, sporting events all but ground to a halt.
Despite what has been described as the worst global sports industry conditions since World War 2, sports analytics company Catapult has managed to pull through.
Not only did the company stay afloat in FY21, but it also expanded. Catapult achieved 100% penetration of NFL teams and grew its multi-solution customers to include the Seattle Seahawks, Stanford University American Football, and the Arizona Coyotes, among others.
Further vaccine rollouts and a shift to more subscription-based sales have Catapult “increasingly confident” in its outlook.
Motley Fool contributor Mitchell Lawler does not own shares of Catapult Group International Ltd.
Sebastian Bowen: CSL Limited (ASX: CSL)
CSL, like many ASX shares, had its business model significantly disrupted by COVID-19 last year. CSL shares have also been hurt over the past few months by a strengthening Australian dollar. But there have been strong signs the company still has a very long growth pipeline.
Overall, CSL arguably remains a strong blue-chip share and the company could continue to be a dominant force in the global healthcare sector. Its slowly-but-steadily rising dividend also offers a benefit of owning CSL shares.
Broker Macquarie Group Ltd (ASX: MQG) has CSL shares as a ‘Buy’, with a 12-month share price target of $312. At the time of writing, the CSL share price is trading at $290.21. Macquarie thinks CSL will deliver meaningful revenue and earnings growth over FY2021, fuelled by immunoglobulin and plasma collections.
Motley Fool contributor Sebastian Bowen does not own shares of CSL Limited.
Brendon Lau: Costa Group Holdings Ltd (ASX: CGC)
According to one broker, the Costa Group share price could bounce next month from its devastating sell-off on the back of a disappointing trading update. Goldman Sachs believes shares in the fruit and vegetable grower were oversold when management warned of labour shortages and weak prices for tomatoes and avocados.
But Goldman sees the share price weakness as a buying opportunity as Costa has a number of medium-term growth opportunities in its favour. These include its expansion into China and Morocco. The broker is recommending the Costa share price as a ‘Buy’ with a 12-month price target of $4.85. At the time of writing, Costa shares are trading at $3.40.
Motley Fool contributor Brendon Lau does not own shares of Costa Group Holdings Ltd.
Rhys Brock: Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan develops sales enablement software. Its platform is designed to support businesses throughout their entire sales and marketing lifecycle, from onboarding and training new staff to managing customer relationships and automating manual processes.
The Bigtincan share price has slid around 6% so far this year. It’s now also around 35% below its 52-week high of $1.60 reached in October. The sell-off has come despite the company recently reaffirming its guidance for full-year FY21 revenue at the upper end of between $41 million and $44 million (implying a year-on-year increase of as much as 42%!).
Motley Fool contributor Rhys Brock owns shares of Bigtincan Holdings Ltd.
James Mickleboro: Nitro Software Ltd (ASX: NTO)
Nitro Software is a company that aims to drive digital transformation in businesses around the world. It does this via its Nitro Productivity Suite, which provides integrated PDF productivity and electronic signature tools.
Demand for its offering has been growing strongly, leading to 68% of Fortune 500 companies and three of the Fortune 10 becoming customers. This helped underpin a 64% increase in annualised recurring revenue (ARR) to $27.7 million in FY20.
Pleasingly, management is expecting more of the same in FY21. It has provided ARR guidance of $39 million to $42 million. This will mean year-on-year growth of between 41% and 51.6%.
Morgan Stanley currently has an overweight rating and a $3.70 price target on Nitro shares. The company closed Monday’s session at $2.88 per share.
Motley Fool contributor James Mickleboro does not own shares of Nitro Software Ltd.