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Key points
- Analysts really like these two ASX shares, with multiple buy ratings
- Healthco Health is a property business which owns a portfolio of healthcare and social real estate
- Corporate Travel is one of the world-leading business travel businesses
There are some very compelling ASX shares that many of Australia's leading analysts rate as a buy right now.
Different businesses look good value at different prices depending on their size and growth outlooks.
However, if many of these brokers all believe that a company is priced attractively then it could be worth considering.
Healthco Healthcare and Wellness Reit (ASX: HCW)
This is a real estate investment trust (REIT) which owns a portfolio of properties across aged care, childcare, government, life sciences and research, and primary care and wellness. The idea is to have a portfolio that is underpinned by attractive megatrends, targeting stable and growing distributions, long-term capital growth and positive overall environmental and social impact.
It's currently rated as a buy by at least three different brokers, including Macquarie which has a price target of $2.52 on the business – that's more than 20% higher than today's level. The broker reckons investors will choose to go to defensive investments in 2022.
The ASX share is expecting to pay a FY22 distribution per unit of 7.4 cents. That translates to a distribution yield of 3.7%.
In October, it pointed out that it has pro forma gearing of just 11.5%, providing financial capacity for acquisitions. That October update included an announcement regarding $200 million of high-quality healthcare acquisitions, with a weighted average capitalisation rate (WACR) of 5.02% and a weighted average lease expiry (WALE) of 17.3 years.
Corporate Travel Management Ltd (ASX: CTD)
Corporate Travel is one of the world's largest business travel businesses.
It's currently rated as a buy by at least six brokers including Macquarie and Morgans. The Morgans price target is $29, which implies a possible rise of the Corporate Travel share price of around 40% over the next 12 months.
Morgans reckons that travel volumes will return as the impacts and concerns regarding Omicron subside, as it did with previous COVID variants.
Whilst Macquarie recognises that the travel sector is being impacted by COVID, it thinks that Corporate Travel will be among the first to recover because of the 'essential' nature of business travel.
On Macquarie's numbers, the Corporate Travel share price is valued at 21x FY23's estimated earnings.
The last trading update that the market received was when the ASX share announced the acquisition of Helloworld Travel Ltd's (ASX: HLO) corporate and entertainment travel business for $175 million on a cash-free and debt-free basis.
As at 30 November 2021, Corporate Travel had maintained positive monthly earnings before interest, tax, depreciation and amortisation (EBITDA) during the second quarter of FY22. However, it did note that momentum was impacted by the Omicron variant.
However, it said that when combined with the Travel & Transport acquisition, it will be a materially larger business after a full travel market recovery, with pro forma combined revenue of $810 million and EBITDA of $265 million.
