If you're looking for new investment options for next week, then the two ASX shares listed below could be worth considering.
Both are highly rated by analysts at Goldman Sachs and tipped to generate strong returns for investors. Here's what the broker is saying about these ASX shares:
Hipages Group Holdings Ltd (ASX: HPG)
The first ASX share that Goldman Sachs has just recommended investors buy is Hipages.
It is a leading ANZ-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies.
Goldman Sachs believes the company has a huge long term growth opportunity. It commented:
Longer term, we believe HPG presents a compelling long growth opportunity as it builds out an essential ecosystem of services for tradies.
In addition, the broker feels the Hipages share price is cheap considering its strong growth potential.
Valuation is supportive relative to global marketplace peers. HPG is trading on 13.9x FY23 EV/EBITDA vs. the median of marketplace peers trading on 15.3x. In our view this does not capture the medium term growth potential of the business: we forecast a 29% EBITDA CAGR (FY22-25E) vs. the median of peers at 14%; we also believe HPG can deliver solid operating leverage over the longer term as the business scales.
Goldman has a buy rating and $2.10 price target on the company's shares. This compares favourably to the current Hipages share price of $1.55.
IDP Education Ltd (ASX: IEL)
Another ASX share that the broker is tipping as a buy is IDP Education. It is a leading language testing and student placement provider.
Goldman was very impressed with the company's FY 2022 results and believes it shows that IDP is becoming the dominant force in English-speaking markets. It said:
We believe IEL's FY22 result reflected 1) operational excellence by managing costs whilst preparing capacity for a strong rebound of students into Australia; and 2) material progress towards becoming the dominant student placement provider into English-speaking markets, including leveraging technology to build a growing presence in the US.
As with Hipages, the broker feels that its shares are cheap considering its strong growth prospects.
IEL is trading c.40% below its 5-yr average P/E premium to the ASX200 Industrials with a forecast 37% FY22-25E EPS CAGR, we remain Buy-rated. We have upgraded EPS in FY23/FY24 by 1.7%/0.8% on the back of the stronger FY22 result, continued strong revenue growth and margin expansion. The balance sheet is in a resilient position with c.A$40mn of net cash to facilitate any bolt-on acquisitions or ramp up in organic investment in new offices and technology.
Goldman has retained its buy rating with an improved price target of $36.00. This compares to the latest IDP Education share price of $28.89.
