There are a lot of shares to choose from on the Australian share market.
In order to narrow things down for investors, listed below are two ASX shares that are highly rated by analysts. Here's what they are saying about them:
Domino's Pizza Enterprises Ltd (ASX: DMP)
The first ASX share for investors to look at is this pizza chain operator. Its shares have been having a tough year due to weakness in Japan and concerns over inflationary pressures.
However, it is worth remembering that these issues are expected to be short-lived. In light of this, it may be best focusing on the long term, which looks very positive thanks to its store expansion plans.
The team at Morgans remain positive on the company and believe recent share price weakness is a buying opportunity.
The broker commented: "We upgraded to ADD after the result and, although inflationary pressures have worsened since then, we continue to believe there is meaningful upside to the current share price over the next 12 months."
Morgans has an add rating and $100 price target on the company's shares.
Nitro Software Ltd (ASX: NTO)
Another ASX share to look at is Nitro Software. It is the global document productivity software company behind the Nitro Productivity Suite. This suite offers businesses of all size integrated PDF productivity and eSignature tools.
Its shares have also been hammered this year. This has been driven by a selloff in the tech sector, which has been felt hardest among loss-making companies. And while Nitro isn't expected to be profitable for several years, it is well-funded and has a huge market opportunity to grow into in the future.
Goldman Sachs is very positive on Nitro and sees it as a great long term pick for investors.
It commented: "We appreciate that a material re-rate likely requires a change in sentiment towards unprofitable tech companies, however we think NTO screens attractively relative to tech peers and on a longer-term view. Our focus now shifts to NTO's execution on its pipeline of new business and e-sign cross-sell opportunities, with concerns over balance sheet now eased. We see NTO as an attractive long-term growth opportunity at a discounted valuation."
Goldman has a buy rating and $2.35 price target on the company's shares.
