The team at Morgans has released a note this morning highlighting three ASX shares that it thinks are among the best options for investors to buy today.
They are as follows:
Alliance Aviation Services Ltd (ASX: AQZ)
This airline and aviation services company has been given an add rating and $5.05 price target. This is materially higher than where the Alliance Aviation Services share price currently trades.
The broker believes that investors should look beyond the short term turbulence that the company is facing and feels that an inflection point is coming.
It commented: "AQZ's interim result and FY22 guidance was weaker than expected. However, significant progress on its E190 deployment has been achieved over the past ~18 months and cash generation in the underlying Fokker business remained robust. Our positive investment case on AQZ has been predicated on the step-change in FY23 earnings growth as its material fleet expansion is deployed and we continue to think the company is nearing this inflection point."
Dexus Industria REIT (ASX: DXI)
Another ASX share that Morgans is a fan of is Dexus Industria (formerly known as APN Industria). It has put an add rating and $3.65 price target on the industrial property company's shares.
Morgans believes that the significant work it has done during the first half has positioned it for growth in the coming years. This includes $584 million in new acquisitions that were funded via a capital raising. It also highlights its attractive dividend yield.
The broker commented: "We retain an Add rating on a revised price target of $3.65. DXI is trading at a discount to NTA, offers a +5% distribution yield with solid underlying portfolio metrics and near/medium term growth opportunities via the development pipeline."
PeopleIn Ltd (ASX: PPE)
Finally, this workforce management company is one of the broker's top picks. It has put an add rating and $5.15 price target on its shares.
The broker is pleased with the way the company has been balancing its portfolio through acquisitions, sees scope for more, and believes it is well-placed for growth as COVID headwinds ease.
Morgans said: "We expect a solid interim result on 18 February and organic growth to accelerate over the 2H22 as COVID challenges normalise. Current international candidate sourcing initiatives should deliver benefits in FY23. With a solid organic growth outlook, potential for further accretive M&A and an undemanding valuation (FY23F PE of ~11.5x), we maintain an Add rating."
