If you’re looking for a few new additions to your portfolio in November, then look no further.
Analysts at Morgans have picked out a number of ASX shares that they class as their best ideas for the month.
The first two I looked at can be found here. Whereas below are two more that the broker rates highly in November:
Sonic Healthcare Limited (ASX: SHL)
The first ASX share to look at is this healthcare company. Morgans is positive on Sonic due partly to its belief that COVID-19 testing demand will remain strong for the foreseeable future. In addition, it likes the company due to its strong balance sheet. It feels this gives it opportunities to make earnings accretive acquisitions.
It explained: “We see COVID-19 testing continuing into the foreseeable future, with growth potential in COVID 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.”
Morgans has an add rating and $45.98 price target on Sonic’s shares.
Woodside Petroleum Limited (ASX: WPL)
Another ASX share that the broker is a fan of is Woodside. It believes the energy producer is well-positioned to benefit greatly from the transformative merger with the petroleum assets of BHP Group Ltd (ASX: BHP).
Morgans commented: “We believe WPL has benefited from being in the right place, at the right time. With: 1) BHP/WPL having an existing relationship, 2) BHP eager to boost its ESG profile, and 3) WPL being a quality operator (safe hands which is important for BHP). From an economic standpoint we think WPL is clearly getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with EBITDA of US$4.7bnpa and growth options.”
The broker currently has an add rating and lofty $29.65 price target on Woodside’s shares.