There are a lot of quality options for investors to pick from on the Australian share market.
But three ASX shares that could be classed as must-owns are named below. Here's why brokers are raving about them:
Capricorn Metals Ltd (ASX: CMM)
If you're looking for exposure to the sky high gold price then Capricorn Metals could be the ASX share to buy. That's the view of analysts at Bell Potter, which have a buy rating and $6.38 price target on its shares.
The broker believes the company is well placed to deliver growing earnings as it lifts its production. It said:
CMM's management team has a track record of capital efficient project funding, development, commissioning and operation. In our view, FY25 and FY26 should benefit from higher revenue and EPS increases by 32% and 6% respectively. CMM is a sector leading gold producer with a strong balance sheet, a management team with an excellent track record of delivery and clear organic growth options to lift group production to 270kozpa.
CSL Ltd (ASX: CSL)
Analysts at Bell Potter are also feeling very positive about this biotechnology giant. So much so, they have the company on their top picks list this month. The broker has a buy rating and $327.42 price target on its shares.
Bell Potter highlights CSL's long track record of generating high returns, positive outlook, and attractive valuation. It said:
The company has a proven track record of deploying capital effectively and generating high returns over the past 25 years. CSL presents an attractive buying opportunity as we anticipate the start of a margin recovery phase for CSL, driving above-market earnings growth over the next few years. CSL trades at a 12-month forward PE of ~28x, representing a discount to its 10-year average of ~31x and a substantial discount to its 5 year average of ~35x. […] Given the company's proven quality and growth prospects, we believe significant upside remains.
ResMed Inc. (ASX: RMD)
Over at Morgans, its analysts think that this sleep disorder treatment company could be a great ASX share to buy. It has ResMed on its best ideas list with an add rating and $35.93 price target.
The broker believes the company is well-positioned for growth over the long term even with the emergence of weight loss drugs. It said:
While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. Although quarters are likely to remain volatile, nothing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.
