The team at Morgans has picked out some of the best ASX shares that it thinks investors should be buying this month.
Among the broker's top picks are the two ASX shares listed below. Here's what you need to know about them:
Santos Ltd (ASX: STO)
If you're interested in gaining exposure to the energy sector, then Santos could be the way to do it.
Morgans believes it is a great option for investors due to its diversified earnings base and strong growth profile.
The broker currently has an add rating and $9.30 price target on the company's shares. Based on the current Santos share price of $7.76, this implies potential upside of 20% for investors.
Morgans explained:
The resilience of STO's growth profile and diversified earnings base see it well placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa's development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio
Webjet Limited (ASX: WEB)
Another ASX share that Morgans rates highly is Webjet. The broker believes that its shares are trading at an attractive level based on its earnings estimate for the recovery year of FY 2024.
Morgans currently has an add rating and $6.40 price target on its shares. Based on the current Webjet share price of $5.26, this suggests potential upside of 22% over the next 12 months.
The broker commented:
Based on our forecasts, WEB is trading on an FY24 recovery year PE which is at a discount to its five-year average PE (pre-COVID). Its WebBeds (B2B) business is highly leveraged to the northern hemisphere summer holiday season which is forecast to be strong. Webjet OTA is leveraged to ANZ domestic and international travel. Management also wasted a crisis and cost reduction initiatives will reduce its cost base by 20% across the group once the business returns to scale.
