If you are lucky enough to have $7,000 available to invest in the share market, then the Australian shares in this article could be some of the best destinations for these funds.
Without further ado, let's see what analysts are recommending as buys:
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CSL Ltd (ASX: CSL)
Bell Potter thinks that CSL could be one of the best Australian shares to buy.
It recently initiated coverage on the biotechnology giant and highlighted the positive outlook of the important CSL Behring division. The broker expects this business to support double digit earnings growth, which it feels makes the company's shares cheap at current levels. It said:
In our view the stock looks undervalued on a PE ratio 18%/8% below 5yr/10yr historical averages and is set for double-digit earnings growth driven by the core Behring division.
Bell Potter has a buy rating and $345.00 price target on its shares.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another Australian share to consider for a $7,000 investment is pizza chain operator Domino's.
Its shares are down heavily over the past 12 months due to concerns over its slower than expected recovery from recent struggles. But with Warren Buffett buying into its US listed parent, now could be an opportune time to pick up shares. Goldman Sachs believes it could be. It recently said:
We currently value ANZ region at 18x FY26e EV/EBIT or 13.1x EV/EBITDA (pre-AASB16), in line with global peers. The current market cap would hence imply Europe/Asia FY24 EV/EBITDA (pre-AASB16) of 10.6x vs DMP's historical acquisition median multiple of ~10.2x for Asia/Europe assets. Reiterate Buy on earnings recovery trajectory with new management and limited valuation downside.
Goldman has a buy rating and $39.10 price target on its shares.
Lovisa Holdings Ltd (ASX: LOV)
The team at Morgans is feeling very positive about fashion jewellery retailer Lovisa and sees it as one of the best Australian shares to buy.
The broker has previously highlighted how Lovisa has the potential to become a true global brand. It commented:
Lovisa has proven it can successfully build out its unique brand in many diverse territories around the world on its journey to becoming a truly global brand. It's at times like these that investors should be getting set to reap the rewards of this strategy over the longer term.
Morgans has an add rating and $36.50 price target on its shares.
NextDC Ltd (ASX: NXT)
Morgans also thinks that NextDC could be an Australian share to buy right now. It is one of the region's leading data centre operators with a growing network of sites in key locations.
The broker believes the company is well-placed to benefit from the significant demand for data centre capacity thanks to artificial intelligence (AI). It said:
Digital Realty recently reported a record sales quarter during which it sold double the data centre capacity of its previous high and about four times more capacity than it usually sells in a quarter. This reinforces our view that the significant demand for cloud computing and AI-related digital infrastructure is going to unpin attractive returns and long-term growth. […] Our preferred exposure is NEXTDC. It has 17 operational data centres in Australia and nearly a dozen under construction or about to be built across Australasia and Asia.
The broker currently has an add rating and $20.20 price target on its shares.
