Goldman Sachs rates these ASX shares as buys

Analysts at Goldman Sachs are saying that these shares are in the buy zone…

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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 at Goldman Sachs. Here's what the broker is saying about them:

Goodman Group (ASX: GMG)

The first ASX share that Goldman Sachs rates highly is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of in-demand properties with exposure to key growth markets such as ecommerce.

Goodman has continued to experience strong demand for its properties in FY 2022. So much so, it recent upgraded its guidance again and is now expecting its earnings per share to grow 23% in FY 2022.

Goldman Sachs expects this solid form to continue. It commented:

We continue to forecast a ~19% CAGR in AUM over FY21-24e, with AUM reaching ~A$90bn by end FY24. We forecast development completions to contribute the majority (~75%) of AUM growth over 1H22-FY24e (based on development production of ~A$7bn pa). Furthermore, we note the robust levels of industrial rental growth being observed in a number of GMG's key global markets, and expect this to underpin further growth in asset valuations

Goldman has a buy rating and $25.40 price target on the company's shares.

Nitro Software Ltd (ASX: NTO)

Another ASX share that Goldman is bullish on 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.

Goldman Sachs sees it as a great long term pick for investors. Especially after after its shares were sold off this year.

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 Sachs has a buy rating and $2.35 price target on the company's shares.

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 positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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