Although Commonwealth Bank of Australia (ASX: CBA) shares have pulled back meaningfully from the record high they reached last month, almost all brokers agree that they are still overvalued.
In light of this, investors may get better returns from looking beyond Australia's largest bank.
But which ASX shares could be good options for investors? Let's take a look at three that brokers rate as buys:
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Coles Group Ltd (ASX: COL)
The first ASX share to look at instead of CBA is Coles. It is of course one of Australia's largest supermarket operators.
Bell Potter is a fan of the company and believes it is well-placed to benefit from moderating costs, higher immigration, supply chain improvements, and its investment in online and digital offerings.
The broker currently has a buy rating and a $19.00 price target on Coles' shares. Based on its current share price of $16.05, this implies a potential upside of 18% for investors over the next 12 months.
CSL Limited (ASX: CSL)
Over at UBS, its analysts believe that CSL could be a top option for investors right now.
CSL is one of the world's largest biotechnology companies. It comprises the CSL Behring blood plasma therapy business, the CSL Vifor iron deficiency and nephrology therapies business, and the Seqirus vaccine business.
UBS thinks the company is well-positioned for growth thanks largely to strong demand for its immunoglobulins. So much so, that its analysts are forecasting double-digit earnings growth over the coming years.
The broker currently has a buy rating and a $330.00 price target on the company's shares. Based on its current share price of $269.49, this implies a potential upside of 22% for investors.
Goodman Group (ASX: GMG)
Another ASX share to consider instead of CBA is Goodman Group. It is a leading integrated commercial and industrial property company.
Goodman has been one of the strongest blue-chip performers on the Australian share market over the last decade. During this time, the company has delivered solid returns and earnings growth thanks to the success of its strategy of developing high-quality industrial properties in strategic locations.
Pleasingly for investors, Goodman's strategy remains in place and the company has a massive development pipeline that is expected to underpin further solid growth over the remainder of the decade.
Macquarie is forecasting this strong growth to continue. As a result, the broker recently put an outperform rating and $34.84 price target on its shares. This suggests a potential upside of approximately 14% for investors from current levels.
