If you have room in your portfolio for some new additions, then you might want to consider the two ASX shares listed below.
Both have recently been named among the best ideas list of one of Australia's leading brokers, Morgans. Here's why its analysts are bullish on these ASX shares:
Healius Ltd (ASX: HLS)
The first ASX share that Morgans rates highly is healthcare company Healius. While COVID testing has clearly peaked, its analysts believe the company will still benefit from some level of testing and also a backlog in diagnosis and surgery. In addition, the broker has previously highlighted Healius' strong balance sheet, which provides it with opportunities to boost its earnings inorganically. Morgans commented:
Healius engages in the provision of healthcare technology solutions. It operates through the following segments: Medical Centres Bulk Billing, Pathology, Imaging, and Medical Centres Private Billing. […] As COVID uncertainty remains, we believe the company looks well placed to not only benefit from a likely "baseload" of COVID PCR testing going forward, but also from any rebound in demand from the backlog in diagnosis and surgery as the country opens up.
The broker has an add rating and $4.50 price target on Healius' shares.
IDP Education Ltd (ASX: IEL)
Morgans appears to believe that this student placement and language testing company could be a great long term pick for investors. And while it acknowledges that its shares are not conventionally cheap, it does see value in them considering its expectation for a two-year earnings per share compound annual growth rate of 38.2%. It commented:
IEL's recovery (Australia Student Placement) and momentum (other divisions) support the strong growth expected in FY23. Structural demand, market share gains, technology-led client retention, operating leverage and acquisitions (especially IELTs distribution) can see IEL compound growth long-term. Value has emerged, however IEL's near-term multiples see the stock susceptible to short-term volatility.
Morgans has an add rating and $31.10 price target on IDP Education's shares.
