2 more of Morgans’ best ASX share ideas for December

These two ASX shares are highly rated…

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A young man wearing glasses and a denim shirt sitting at his desk and raises his fists and screams with delight as he watches his ASX shares go up in value on his laptop.

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If you’re looking for a few new additions to your portfolio in December, 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 December:

Transurban Group (ASX: TCL)

Morgans is a big fan of this toll road operator. The broker notes that the company’s high quality toll road portfolio gives investors exposure to trends such as “regional population and employment growth and urbanisation.” Its analysts currently have an add rating and $14.79 price target on Transurban’s shares.

Morgans commented: “We think TCL will continue to be attractive to investors given its market cap weighting (important for passive index tracking flows), the high quality of its assets, management team, balance sheet, and growth prospects. Watch for rapid recovery in DPS alongside traffic recovery and WestConnex acquisition prospects. A negative overhang is the contaminated soil disposal issues related to its West Gate Tunnel Project.

Woodside Petroleum Limited (ASX: WPL)

If you’re looking for exposure to the energy sector then Morgans has a couple of options on its best ideas list. One of those is Woodside, which it believes will benefit greatly from the transformative merger with the petroleum assets of BHP Group Ltd (ASX: BHP). Morgans has an add rating and $29.95 price target on Woodside’s shares.

Its analysts explained: “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.”

Should you invest $1,000 in Woodside right now?

Before you consider Woodside, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Woodside wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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