Morgans names 2 of the best ASX share ideas for December

These two ASX shares are highly rated…

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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.

Below are two top ASX shares that the broker rates highly this month. They are as follows:

BHP Group Ltd (ASX: BHP)

Morgans is a big fan of this mining giant and has an add rating and $45.70 price target on its shares. The broker likes the Big Australian due to the diversity of its operations, which it notes makes it a lower risk option for investors in the resources sector. Morgans also highlights its resilient dividend profile, which it expects to underpin a ~$3.40 per share dividend in FY 2022. This equates to a fully franked 8.5% yield at current levels.

Morgans commented: “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.”

Westpac Banking Corp (ASX: WBC)

Another giant that Morgans has on its best ideas list is Westpac. It believes Westpac is the best option for investors in the banking sector due to its compelling valuation. The broker also likes Westpac due to its cost reduction plans and risk profile. Morgans has an add rating and $30.50 price target on the bank’s shares.

Its analysts said: “WBC is our preferred major bank. We believe WBC offers the most compelling valuation of the major banks. In terms of quality of overall risk profile, we believe WBC is a close second to CBA. On credit risk, we believe WBC is positioned relatively defensively due to its loan book being more skewed to Australian home lending. […] we expect investors to increasingly warm up to WBC’s medium-term cost out story.”

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