The team at Morgans has been busy again picking out its best ASX share ideas for the month of September.
These are the shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.
The first three shares we looked at can be found here. Read on for the next three:
GQG Partners Inc (ASX: GQG)
The first ASX share that Morgans is tipping as a buy is fund manager GQG Partners. Its analysts believe that recent weakness in the GQG share price has left it trading at a very attractive level. The broker commented:
GQG's strong relative investment outperformance through the current market weakness should solidify the near-term flows outflow. GQG has diversified earnings (by strategy and clients); solid performance track-record; and ongoing growth prospects. In our view, the current ~10x PE (versus a sector medium-term average of ~16x) is attractive.
Morgans has an add rating and $2.02 price target on the company's shares.
Nextdc Ltd (ASX: NXT)
Another ASX share that the broker rates highly right now is data centre operator NextDC. It is a fan of the company due to its exposure to structural tailwinds that are driving very strong demand for its data centres. It is expecting this to underpin stellar earnings growth in the coming years. The broker said:
Structural demand for cloud and colocation remains incredibly strong. NXT's new S3 and M3 data centres go live shortly and this should result in significant new customer wins over the next six months (including CSP options being exercised). Sales should drive the share price higher. NXT looks comfortably on-track to generate over $300m of EBITDA in the next three to five years.
Morgans has an add rating and $13.30 price target on NextDC's shares.
ResMed Inc (ASX: RMD)
A final ASX share that Morgans thinks investors should be buying is sleep treatment company ResMed. The broker is a fan of the company due to its positive long term growth outlook, which is being underpinned by its digital platform. It said:
While we expect the next few quarters to be volatile as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.
Morgans has an add rating and $37.08 price target on ResMed's shares.
