Good news for investors looking for promising opportunities in ASX shares with the latest round of analyst recommendations posted on Tuesday.
The list is extensive, but three companies are worth mentioning based on their recent business activities.
These shares are Aspen Group Ltd (ASX: APZ), Amotiv Ltd (ASX: AOV), and Deterra Royalties Ltd (ASX: DRR). Although these companies operate in different industries, they each have one thing in common – several brokers have become bullish on them.
Let's dive into why these stocks are catching the attention of analysts.
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ASX shares rated buys
Aspen Group specialises in affordable housing, owning over 5,000 approved dwellings and land sites across the country.
The company's core customer base is those Australians with a rental budget of no more than $400 per week or $400,000 to purchase a home.
According to my colleague Kate, Aspen's business model is gaining traction, with its rental income and property development revenue growing significantly. This could present an opportunity in the wake of potential rental shortages, Kate says.
Bell Potter has initiated coverage on Aspen as a buy this week, according to The Australian. The ASX share is trading at $1.95 per share at the time of publication, up more than 8% in the past month.
Amotiv in favour
Amotiv, formerly known as GUD Holdings, operates in the automotive aftermarket, selling consumer and industrial products.
Goldman Sachs has started coverage on Amotiv today as a buy with a $13 per share price target.
The ASX share is trading at $10.33 per share at the time of writing, offering nearly 26% upside potential at Goldman's price objective.
Bell Potter is also bullish on Amotiv. According to my colleague James, the broker highlights Amotiv's undemanding valuation and strong growth outlook.
The broker believes Amovtiv is a fundamentally sound business and values the shares at $12.80 each.
ASX mining share Deterra Royalties
Deterra Royalties is a mining royalties company with a portfolio spanning various commodities. Its assets include Mining Area C, operated by BHP Group Ltd (ASX: BHP).
The ASX share has caught the attention of CLSA, which upgraded its rating from hold to 'outperform', The Australian reports.
It has a $4.20 per share price target on the ASX share, implying an 8% upside at the current price. Based on its trailing dividend of 31.7 cents per share, this also implies an 8% trailing dividend yield.
Goldman Sachs is also bullish on Deterra and recently revised its earnings forecasts for the business in a recent note.
The broker noted the stock's sell-off following a $276 million acquisition of Trident Royalties Plc and changes to its dividend policy. Goldman set a price target of $4.70 per share, indicating a potential upside of 21% at the time of writing.
Foolish takeaway
These three ASX shares are rated as buys by top brokers, each for different reasons.
Aspen's focus on affordable housing, Amotiv's strong position in the automotive aftermarket, and Deterra's strategic growth moves could make them compelling choices for investors if these brokers are right.
But as always, remember to conduct your own due diligence.
