Morgans names 2 more of the best ASX shares to buy in February

Jewellery and pizza… these could be some of the best shares to buy in February according to analysts at Morgans…

| More on:
A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The team at Morgans has been busy picking out its best ASX share ideas for February.

These are the shares that its analysts think offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.

The first two shares we looked at can be found here. Read on for the next two:

Domino's Pizza Enterprises Ltd (ASX: DMP)

Morgans has this pizza chain operator on its best ideas list again this month. Its analysts continue to believe that investors should be taking advantage of the share price weakness that has been caused by headwinds that will soon reverse. It explained:

DMP is, in our opinion, a high quality operator with significant brand strength, first class executive management and a global platform for long-term network expansion. Cost inflation and adverse FX movements present significant challenges to earnings at present, as evidenced by EBIT margins, which fell from 13.4% in FY21 to 11.5% in FY22. SSS sales, which averaged +6.9% in the ten years between FY11 and FY21, dropped to (0.3)% in FY22 and (1.0)% in FY23 YTD. We believe these pressures are transitory in nature. In our opinion, now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time. The recent equity raise will fund DMP's acquisition of the remaining stake in its German joint venture and keep gearing low enough to allow for future M&A optionality.

The broker has an add rating and $90.00 price target on Domino's shares.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX share that Morgans has on its best ideas list is growing fashion jewellery retailer Lovisa. Morgans thinks very highly of the company and believes it could one day become a global force thanks to its ambitious leadership team and global expansion plans. It said:

LOV may just prove to be one of the biggest success stories in Australian retail. With ambitious and well-incentivised new leadership in place, we think now is the time LOV steps up to become a global force. LOV has accelerated its organic rollout in the US and entered into a number of new markets, including Poland, Canada, Mexico and Hong Kong. It is also poised to enter the important market of Italy. Investment will be needed to expand LOV's network in the US and Europe and to take it into new markets, but the returns could be stellar. We think LOV's products fill an underserved niche, offering fast fashion jewellery at prices that are attainable to the target demographic

Morgans has an add rating and $28.50 price target on Lovisa's shares.

Motley Fool contributor James Mickleboro has positions in Domino's Pizza Enterprises. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises and Lovisa. The Motley Fool Australia has recommended Domino's Pizza Enterprises and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A man looks surprised as a woman whispers in his ear.
Broker Notes

These ASX 200 shares could rise 20% to 40%

Analysts are tipping these shares to deliver market-beating returns over the next 12 months.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Leading broker upgrades Pro Medicus shares to buy rating

Analysts at Bell Potter think this tech stock is a top buy right now.

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend
Broker Notes

3 reasons to buy Woolworths shares this month

Goldman Sachs thinks that now is the time to buy this retail giant.

Read more »

Investor sitting in front of multiple screens watching share prices
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

thoughtful investor sitting at computer
Healthcare Shares

What are brokers saying about CSL shares after the selloff?

The biotech giant's shares hit a 52-week low yesterday. Is this a buying opportunity?

Read more »

A young woman drinking coffee in a cafe smiles as she checks her phone.
Broker Notes

Beginner investors: 3 top Australian shares to buy for 2025

Analysts think these shares are buys and offer plenty of upside.

Read more »

a female steel worker wearing a high visibility vest with her protective helmet tucked under her arm smiles as she carries a clipboard in a large warehouse of steel products.
Earnings Results

Looking at BlueScope shares? Here's your half-year results preview

What is the market expecting for the first half?

Read more »