If you're looking to make some new additions to your portfolio in July, then look no further. The team at Morgans have picked out a number of ASX shares that they class as their best ideas.
Below are three ASX shares that the broker rates highly this month. They are as follows:
Aristocrat Leisure Limited (ASX: ALL)
The first ASX share that Morgans rates among its best ideas this month is Aristocrat. It is a leading gaming technology company with a portfolio of popular poker machines and mobile games. Morgans is very positive on the company's outlook due to this portfolio, its strong balance sheet, and its plans to move into real money gaming.
The broker explained:
We expect ALL to continue to take market share in all its product segments. Demand for its gaming machines and digital games is resilient to economic cycles. […] With $3.3bn of currently available liquidity, ALL has significant funding capacity for growth, even after the buyback. It has a stated ambition to build a meaningful presence in the rapidly growing online real money gaming segment, which we believe may be achieved both through organic investment and inorganic acquisitions.
Morgans has an add rating and $43.00 price target on Aristocrat's shares.
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX share that makes the broker's best ideas list this month is wine giant Treasury Wine. Morgans is bullish on the company due to its strong brands, positive growth outlook, and attractive valuation.
Morgans commented:
TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.
Morgans has an add rating and $13.93 price target on Treasury Wine's shares.
Wesfarmers Ltd (ASX: WES)
Finally, this conglomerate makes the broker's best ideas list again this month. It is a fan of Wesfarmers due to its talent management team, strong retail portfolio, and recent share price weakness.
Morgans explained:
WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are proving to be a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the pullback in the share price as a good entry point for longer term investors.
Morgans has an add rating and lofty $58.40 price target on Wesfarmers' shares.
