The team at Morgans has been busy picking out its best ASX share ideas for June.
The first two ASX stocks we looked at can be found here. Read on for three more picks:
Clearview Wealth Ltd (ASX: CVW)
Morgans is positive on this financial services company and sees it as an ASX stock to buy in June.
The broker likes the company due to its large opportunity in the retail life insurance market, its business transformation program, and undemanding valuation. It commented:
CVW is a challenger brand in the Australian retail life insurance market (market size = ~A$10bn of in-force premiums). CVW sees its key points of differentiation as its: 1) reliable/trusted brand; 2) operational excellence (in product development, underwriting and claims management); and 3) diversified distributing network. CVW's significant multiyear Business Transformation Program has, in our view, shown clear signs of driving improved growth and profitability in recent years. We expect further benefits to flow from this program in the near term, and we see CVW's FY26 key business targets as achievable. With a robust balance sheet, and with our expectations for ~21% EPS CAGR over the next three years, we see CVW's current ~11x FY25F PE multiple as undemanding.
Morgans has an add rating and 78 cents price target on its shares.
GUD Holdings Limited (ASX: GUD)
Another ASX stock that Morgans is bullish on is GUD. It is a diversified products company with a focus on the auto market.
The broker thinks GUD is a high quality company and sees its investment case as compelling. It explains:
GUD is a high-quality business with an entrenched market position in its core operations and deep growth opportunities in new markets. We view GUD's investment case as compelling, a robust earnings base of predominantly non-discretionary products, structural industry tailwinds supporting organic growth and ongoing accretive M&A optionality. We view the ~12x multiple as undemanding given the resilient earnings and long-duration growth outlook for the business ahead.
Its analysts have an add rating and $13.71 price target on its shares.
Stanmore Resources Ltd (ASX: SMR)
A final ASX stock that could be a buy according to Morgans is coal miner Stanmore Resources.
Its analysts believe that coal prices could trade significantly higher than expectations in the future and expect Stanmore Resources to benefit. They said:
SMR's assets offer long-life cashflow leverage at solid margins to the resilient outlook for steelmaking coal prices. We're strong believers that physical coal markets will see future cycles of "super-pricing" well above consensus expectations, supporting further periods of elevated cash flows and shareholder returns. We like SMR's ability to pay sustainable dividends and its inventory of organic growth options into the medium term, with meaningful synergies, and which look under-recognised by the market. We see SMR as the default ASX-listed producer for pure met coal exposure. We maintain an Add and see compelling value with SMR trading at less than 0.8x P/NPV.
Morgans has an add rating and $4.20 price target on its shares.
