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.
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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.
