Goldman Sachs has been busy running the rule over the ANZ telecoms, media, and technology (TMT) space and has picked out a number of ASX shares it rates as buys.
Let's now take a look at the shares that the broker is tipping as buys this month.
Which ASX shares are buys?
Goldman thinks that the following ASX shares are buys in the TMT space:
- Elasticity connectivity and network services interconnection provider Megaport Ltd (ASX: MP1)
- Media giant News Corp (ASX: NWS)
- Data centre operator Nextdc Ltd (ASX: NXT)
- Media company Nine Entertainment Co Holdings Ltd (ASX: NEC)
- Property listings company REA Group Ltd (ASX: REA)
- Telco giant Telstra Group Ltd (ASX: TLS)
- Cloud accounting platform provider Xero Ltd (ASX: XRO)
The broker commented:
Our preferred names include: 1) Telstra (Buy) and NextDC (Buy) in the telco/digital infra space given resilient and predictable earnings growth (and dividends for Telstra); (2) REA, NWS & NEC in Media, given we are very positive on REA's ability to continue growing yields into the medium-long term, with News Corp also exposed to this alongside the digital led growth at Dow Jones, while having a compelling underlying valuation; (3) XRO and MP1 in Technology, with both companies delivering a much improved earnings outlook under their (relatively) new CEOs.
In respect to Telstra, the broker currently has a buy rating and $4.65 price target on its shares. This offers 14% upside for investors from current levels. It commented:
We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn.
