3 more of Morgans’ best ASX share ideas for July

These three ASX shares are highly rated…

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If you’re looking for a few new additions to your portfolio in July, then look no further.

Analysts at Morgans have picked out a number of ASX shares that they class as their best ideas for the month.

The first three we looked at can be found here. Whereas below are three more that the broker rates highly:

BHP Group Ltd (ASX: BHP)

The first ASX share that Morgans thinks could be a great option for investors in July is BHP. The broker likes the Big Australian due to its diverse operations and resilient dividend profile.

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct Covid-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

Morgans has an add rating and $48.30 price target on BHP’s shares.

Macquarie Group Ltd (ASX: MQG)

Another ASX share that the broker is a fan of this month is investment bank Macquarie. Its analysts believe that the company’s exposure to long term structural growth markets are a big positive.

We continue to like MQG’s exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while the company continues to gain market share in Australian mortgages.

The broker has an add rating and $215.00 price target on Macquarie’s shares.

South32 Ltd (ASX: S32)

A final ASX share that Morgans rates among its best ideas is South32. This diversified miner has caught the eye of the broker due to the hard work it has done with its portfolio transformation. Not only has this boosted the quality of its earnings, it has improved its ESG credentials.

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

Morgans has an add rating and $6.10 price target on South32’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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group 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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