The ASX is off to a flying start today. The benchmark S&P/ASX 200 Index (ASX: XJO) has gained 0.18% to 7447 points from the open while the All Ordinaries (ASX: XAO) is also in the green.
With this comes a number of broker notes from leading investment firms covering ASX shares.
Here are three companies that analysts have labelled as buys today — and the reasons for doing so.
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Scentre Group (ASX: SCG)
An update from investment bank JP Morgan covers Scentre Group's recent deals in the retail property space, which it feels the market is underappreciating.
The broker notes that Scentre Group is trading at 15x its funds from operations (FFO) and presents with a 5% distribution yield.
It suggests "[Scentre's] 14% discount to net tangible assets implies a further 10% decline in asset values transactions supporting current book values".
This, it reckons, is an unfair punishment for Scentre Group's share price. According to the broker, this could bode well for future investors.
As such, JP Morgan has lifted its price target on the Scentre Group share price by 9.4% to $3.50, implying a 12% upside potential at the time of writing.
Scentre Group shares are currently swapping hands at $3.125 cents apiece.
Computershare Ltd (ASX: CPU)
Morgan Stanley has upgraded its price target on Computershare by 20% to $21.50 in an updated analysis today.
The broker believes the provider of issuer and mortgage services has the potential to upgrade its FY22 guidance in support of its view.
Although it acknowledges "wage pressures", Morgan Stanley also notes Computershare's current "management" earnings per share (EPS) guidance that calls for a 2% growth in FY22.
This is backed by the broker's estimates on interest rate hikes, strong corporate action, and various cost-cutting exercises.
Specifically, Computershare's exposure to longer-term interest rates – up to 5 years – is attractive to the broker.
As such, Morgan Stanley forecasts a robust schedule of growth in EPS of 10% in both FY23 and FY24, helping it arrive at the $21.50 price target.
Shares in Computershare are now changing hands at $19.26 apiece, dipping into the green in early trading. As for the last 12 months, they have gained 43%.
National Australia Bank Ltd (ASX: NAB)
Economic recovery and NAB's market-leading position are key drivers to the bank's share price outlook, according to a note from Goldman Sachs.
The broker reckons that NAB's asset quality is "clean" and of a high grade. It also notes management's guidance in the bank's business and private banking divisions don't appear to impact margin performance.
Following the release of its FY21 results, Goldman was pleased by NAB's balance sheet expansion and has reiterated its buy recommendation on the ASX share.
JP Morgan agrees, comparing its earnings outlook with that of fellow Australian banks in the Big 4 club.
It too likes NAB's forecasts on its business banking segment. The broker says it "sets NAB apart, with a return on equity profile second only to CBA in the major banks".
It also reckons NAB offers the best risk/reward profile in the sector, subsequently reiterating its overweight recommendation as well.
At the time of writing, the NAB share price is commanding $30.055, climbing 4% from the open.
