Analysts say these ASX shares are buys

Big returns could be on offer from these shares…

| More on:
A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements

Image source: Getty Images

There are a lot of quality options for investors to choose from on the Australian share market. Two that analysts are particularly positive on are listed below.

Here’s why analysts rate these ASX shares as buys:

Rio Tinto Limited (ASX: RIO)

The first highly rated ASX share for investors to look at this month is this mining giant.

It could be a top option due to its attractive valuation, production growth outlook, its exposure to aluminium, and strong free cash flow generation. The latter is expected to underpin a double digit dividend yield in FY 2022 according to the team at Goldman Sachs.

It is partly for this reason that the broker currently has a buy rating and $121.00 price target on its shares.

Goldman is also very positive on its aluminium business. It commented: “In addition to copper production growth, Rio has one of the highest margin, lowest carbon emission aluminium businesses in the world, with over 2.2Mt of Ali production powered by hydro, and we think ELYSIS inert anode technology could be worth billions of $.”

Webjet Limited (ASX: WEB)

Another ASX share that is highly rated right now is this online travel agent. Especially given recent weakness in the Webjet share price, which leaves it trading far closer to its 52-week low than its 52-week high.

The team at Morgans is very positive on the company’s outlook in a post-COVID world. This is thanks to its cost reductions and bold market share targets. The broker recently upgraded Webjet’s shares to an add rating with a $6.60 price target.

Morgans commented: “WEB is targeting to return to pre-COVID booking levels in the 2H23.Management continues to maintain its aspirational market share targets and wants to reduce the company’s cost base by 20% when it returns to scale. This means that WEB should be materially more profitable post COVID.”

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

Before you consider Webjet, 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 Webjet 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 recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Travel Shares

Is the Webjet share price an opportunity that can soar?

Are Webjet shares worth considering as the world recovers from COVID-19 impacts?

Read more »

ASX shares Business man marking buy on board and underlining it
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers rate these ASX shares as buys...

Read more »

Some kids fly a kite in strong winds at sunset.
Broker Notes

Broker reveals undervalued ASX sector with post-election tailwinds

Though not all shares in this undervalued ASX sector are a buy, according to Canaccord.

Read more »

Happy woman miner with her thumb up signalling Wyloo's commitment to back IGO's takeover of Western Areas nickel
Broker Notes

Why the IGO share price is rallying on Monday

Shares in the Western Australian miner are up again in early Monday trading.

Read more »

an attractive woman sits at her computer with her chin resting on her hand as she comtemplates information on its screen in a light-filled home office environment.
Broker Notes

Potential buys from experts: 2 compelling ASX shares

Breville is one of the ASX shares that experts believe could be a good prospect.

Read more »

a woman in business wear looks at her phone against the window of a high rise space with a city landscape view of tall buildings outside.
Broker Notes

Buy these ASX growth shares in May: experts

We check the credentials of two ASX companies that are rated as buys by brokers.

Read more »

busy trader on the phone in front of board depicting asx share price risers and fallers
Dividend Investing

Expert reveals the dividend ASX share he just bought (and one he dropped)

Investors are flocking to income-producing stocks. Here's what one fund manager recently bought and another he just sold.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Investing Strategies

2 ASX shares (not banks!) to boom from rising interest rates: experts

They're rare, but there are businesses that aren't banks that will benefit from higher rates. Here's a couple of examples.

Read more »