The team at Morgans has recently named a number of shares that it rates highly.
Two that get the tick of approval are listed below. Here's why its analysts have named these ASX shares as buys:
Lovisa Holdings Ltd (ASX: LOV)
This fashion jewellery retailer could be an ASX share to buy according to Morgans. It believes the company has huge growth potential thanks to its global expansion plans and strong position in an underserved niche.
Morgans currently has an add rating and $24.50 price target on the company's shares. It commented:
LOV has a substantial multi-year global rollout opportunity across four continents. This opportunity has been materially boosted by the acquisition last year of beeline, which took LOV into several new European markets (notably Germany) and accelerated its expansion in France. We think LOV's products fill an underserved niche, offering good quality fashion jewellery at prices that are attainable to the target demographic. The recent appointment of Victor Herrero as CEO, replacing Shane Fallscheer, provides a clue as to the extent of LOV's global ambition, and its impatience to realise that ambition. The next few years will be worth watching.
NextDC Ltd (ASX: NXT)
Another ASX share that the broker is bullish on is data centre operator NextDC. Thanks to strong and growing demand for data centre capacity and its expanding network of world class centres, the broker is tipping NextDC to grow strongly in the coming years.
Morgans has an add rating and $13.30 price target on the company's shares. It commented:
NXT should deliver a strong result at the upper end of guidance. 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.
