Yesterday I had a look at a few ASX shares that Morgans has named as its best ideas for June. You can read about those here.
This afternoon, I'm going to keep going and bring a few more highly rated ASX shares to your attention. Here's why this leading broker likes these shares:
BHP Group Ltd (ASX: BHP)
If you're not averse to investing in the resources sector, then you might want to look at BHP. Morgans sees it as a low risk option in the sector due to its diverse operations.
It explained: "We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP's operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile."
Macquarie Group Ltd (ASX: MQG)
This investment bank could be good value according to Morgans. This is particularly given its exposure to growth markets. Its analysts currently have an add rating and $171.00 price target on its shares.
The broker commented: "We still see MQG as relatively inexpensive and continue to like its exposure to long-term structural growth areas such as infrastructure and renewables. Near term MQG is likely to face earnings pressures from the impact of soft economic conditions but it remains well positioned to ride out the current COVID-19 period and seize opportunities on the other side."
Sonic Healthcare Limited (ASX: SHL)
Finally, thanks to COVID-19 testing volumes remaining strong, Morgans believes this healthcare company is well-placed for growth. It also sees opportunities for the company to make earnings accretive acquisitions. Morgans has an add rating and $36.15 price target on its shares.
Morgans said: "We see COVID-19 testing continuing into the foreseeable future, with growth potential in COVID-19 serology testing. SHL's global base business is increasingly resilient, benefitting from geographical diversity. Strong B/S (gearing 21.6x; A$1.3bn headroom) opening the door to acquisitions, contracts and JVs."
