There are a lot of Australian shares to choose from on the share market, but which could be great picks for a $1,000 investment?
Let's take a look at two that brokers are urging investors to buy right now. They are as follows:
Megaport Ltd (ASX: MP1)
The first Australian share that could be a great option for a $1,000 investment is Megaport. It is a leading global provider of elastic interconnection services.
Goldman Sachs is a big fan of the company and has a buy rating and $12.00 price target on its shares. If this recommendation proves accurate, a $1,000 investment would turn into approximately $1,760 over the next 12 months.
It believes that the company's exposure to strong structural tailwinds leaves it well-placed for growth in the coming years. It said:
We believe MP1 will benefit from strong structural tailwinds from the adoption of public cloud including multi-cloud usage and the transition towards NaaS technologies. While acknowledging mixed near-term execution around the partner channel and the new MVE product, we are Buy rated on the name as we remain confident MP1 has a clear product advantage vs. peers and a decade-long runway for robust growth. Despite the soft operational trends in recent periods, we expect still robust top-line growth, with the increased focus on profitable growth supporting an attractive earnings profile over FY24-26.
Treasury Wine Estates Ltd (ASX: TWE)
Another Australian share that could generate big returns for a $1,000 investment is Treasury Wine. It is one of the world's leading wine companies, best known for its famous Penfolds brand.
Morgans is bullish on the company and recently put an add rating and $14.80 price target on its shares. This implies potential upside of 33% for investors and would turn a $1,000 investment into approximately $1,330.
The broker believes Treasury Wine could be well-placed to grow its earnings in the double digits until at least FY 2027. It said:
TWE's FY24 result held few surprises given the company's recent trading updates. Pleasingly, its two Luxury portfolios and cashflow all slightly beat guidance. The much smaller and low margin Treasury Premium Brands (TPB) disappointed. Importantly, its targets for both of its Luxury wine businesses over the next few years were reiterated, and if delivered, will underpin double digit earnings growth out to FY27. While not without risk given macro headwinds, TWE's trading multiples look attractive to us. and we maintain an Add recommendation. We maintain our ADD rating.
