The team at Morgans has been busy once again looking for the best ASX shares for investors to buy this month.
Two that make the broker's best ideas list in October are listed below. Here's why Morgans rates them highly:
Image source: Getty Images
BHP Group Ltd (ASX: BHP)
If you're not averse to investing in the resources sector, then you might want to consider the Big Australian. Morgans rates BHP as one of its best ideas thanks to the miner's superior diversification and strong balance sheet. It explained:
We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP's operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile
Morgans has an add rating and $48.00 price target on the mining giant's shares.
SEEK Limited (ASX: SEK)
Another ASX share that Morgans is tipping as a buy this month is Seek. It is of course the leading online job listings company in the ANZ region. After a strong performance in FY 2022, Morgans believes the stars have aligned for another strong showing in FY 2023. It commented:
Of the classifieds players, we continue to see SEEK as the one with the most relative upside, a view that's based on the sustained listings growth we've seen over the period. The tailwinds that have driven elevated job ads (~250k currently, +35% on pcp) and strong FY22 result appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility. With businesses looking to grow headcount in the coming months and job mobility at historically high levels according to the RBA, we see these favourable operating conditions driving increased reliance on SEEK's products.
The broker has an add rating and $29.40 price target on Seek's shares.
