Why analysts slapped buy ratings on these ASX shares

These ASX shares have had buy ratings slapped on them…

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If you’re on the lookout for some new additions to your portfolio, then you may want to hear what analysts are saying about the ASX shares listed below.

Here’s what you need to know:

Bega Cheese Ltd (ASX: BGA)

The team at Bell Potter believe this diversified food company’s shares are in the buy zone at the current level. That’s despite a recent rally after it emerged that Andrew Forrest’s investment business has been loading up on shares.

The broker likes Bega Cheese largely due to its game-changing acquisition of the Lion Dairy & Drinks business for $528 million last year.

It commented: “The acquisition of Lion Dairy & Drinks (LDD) and targeted synergy base is expected to drive a material step change in returns for BGA over the next three years. In addition, we see BGA benefiting from recent upward moves in both commodity price drivers (SMP returns up +32% since Jun’21) and price increases on private label milk for only the second time in 20 years (+10¢/l by both Woolworths and Coles).”

Bell Potter has a buy rating and $6.45 price target on its shares. This compares to the latest Bega Cheese share price of $5.31.

Transurban Group (ASX: TCL)

Another ASX share that analysts rate highly right now is Transurban. The team at Morgans, for example, appear to believe it could be a good option for investors looking for income. This is due to its forecasts for a rapid dividend recovery post-pandemic as traffic volumes recover.

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.”

The broker has an add rating and $14.57 price target on its shares. This compares to the latest Transurban share price of $13.49.

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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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