If you are hunting for some new additions to your portfolio in September, then the ASX shares listed below could be worth a closer look.
They have both been named as favoured shares by Bell Potter for the month ahead. The broker notes that these are the shares that it believes "offer attractive risk-adjusted returns over the long term."
In addition, Bell Potter highlights that when choosing its picks it considers the current macro-economic backdrop and investment environment, focusing on quality companies with proven track records, capable management, and competitive advantages.
You can read about the first three ASX shares on the list here. Let's now take a look at two more of the broker's top picks for the month:
Arcadium Lithium (ASX: LTM)
Bell Potter thinks that this lithium giant could be an ASX share for brave investors to buy. It sees potential for huge returns when the lithium industry finally turns a corner. The broker explains:
LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance sheet and growth portfolio.
Its analysts currently have a buy rating and lofty $7.25 price target on the lithium miner's shares.
IPD Group Ltd (ASX: IPG)
Another ASX share that Bell Potter is bullish on in September is IPD Group. It is a growing provider of electrical solutions in energy management and automation.
Bell Potter believes the company could be a great way to gain exposure to the electrification trend. It explains:
We view IPG as a high-quality play on the electrification growth trend which is emerging as a dominant market narrative. Our favourable investment thesis is based on three key points: (1) product volumes being driven by refurbishment/ upgrade of existing infrastructure and by virtue of relatively low demand risk; (2) IPD's large turnaround opportunity with a globally leading manufacturer in ABB (market share in Australia of 5-10% compares to Europe of 20-30%); and (3) IPD's electric vehicle charging opportunity reaching a tipping point. Australia is set for a $650m public fast charging investment cycle by 2027 and IPD is engaged with a number of players who we expect to lead this transition (e.g. service station chains and network operators).
The broker currently has a buy rating and $6.00 price target on the company's shares.
