There are a few ASX shares that brokers believe are top opportunities to think about in August 2021.
Share prices are always changing, so brokers can change their opinion about whether a business is good value or not.
At the moment, these two ASX shares are ones that brokers believe look like good value:
Newcrest Mining Ltd (ASX: NCM)
Newcrest is one of the largest gold miners in the world with a market capitalisation of around $22 billion according to the ASX.
It’s currently rated as a buy by quite a few different brokers including Morgans which has a price target on Newcrest of $30.53.
The broker thought it was a strong performance and noticed the lower all-in sustaining cost (AISC) thanks to higher production. It believes copper is going to be a larger part of earnings over the next year.
Newcrest Mining said in its quarterly update that it achieved its FY21 gold guidance with production of 542,000 ounces and copper production of 38kt.
The ASX share said its AISC was $797 per ounce in the three months to 30 June 2021. That meant it had a AISC margin for the quarter of 55%, or $983 per ounce.
For the whole of FY21, it saw an AISC of $905 per ounce, delivering an AISC margin of 49%, or $884 per ounce.
Newcrest said that Cadia achieved record annualised mined ore and mill throughput rates.
Seven West Media Ltd (ASX: SWM)
Seven West is one of the largest media businesses in Australia. It runs the Seven Network and associated channels. It also has the video platform 7plus, it has 7news.com.au as well as other media assets. Seven is currently the broadcaster partner for the Olympics.
Investors recently learned that the Tokyo 2020 Olympic Games led to the biggest day of live-streaming in Australian television history, according to reporting by the Australian Financial Review.
It’s currently rated as a buy by a number of brokers including Ord Minnett, with a price target of $0.65. That suggests the Seven West share price could rise by around a third over the next 12 months, if the broker is right about the ASX share.
The broker is attracted to strong advertising spending and a growing presence in the digital media space.
In the middle of June 2021, Seven West gave a trading update which said trading conditions in the fourth quarter had been positive, with a strong rebound in advertising revenue compared to last year.
Seven’s advertising revenue including video on demand is estimated to grow more than 45% in the quarter.
The company also said that early indications suggest ongoing positive momentum into the September quarter.
At the time of the June update, it said that its video on demand consumption was growing strongly, with 62% growth of registered users on 7plus in the year to date, compared to market growth of 50.7%. 7plus had secured a 37.2% revenue share in the 10 month to April 2021, a 5.8 percentage point increase on the previous corresponding period.
Digital earnings were also growing strongly. Seven ‘digital’ was expected to contribute earnings before interest, tax, depreciation and amortisation (EBITDA) of more than $60 million in FY21, up 130% year on year. Digital earnings are expected to more than double in FY22.