Do you have $7,000 gathering dust? If you do, it could be worth putting it to work in the share market.
But which Australian stocks could be top picks for these funds? Let's look at three that analysts are bullish on. They are as follows:
HMC Capital Ltd (ASX: HMC)
The first Australian stock to buy with the $7,000 could be HMC Capital.
Bell Potter is positive on the alternative asset manager and believes recent share price weakness has created a buying opportunity. The broker has a buy rating and $13.50 price target on its shares. It said:
[I]t has been remarkable half year period for HMC and we upgrade to Buy (was Hold). We think the share price pull-back provides an attractive entry point as the platform is reaching a scale and breadth sweet spot juncture which could see fee-earning capability increase further yet, and screens inexpensively vs. key global alternative AM and real estate fund manager peers.
Iress Ltd (ASX: IRE)
Another Australian stock to consider buying is financial technology company Iress.
Morgans has become bullish on the stock recently. It believes the worst is now behind it and solid growth is coming in FY 2025. The broker has an add rating and $11.20 price target on its shares. It commented:
IRE reaffirmed FY24 earnings guidance, expecting to deliver towards the top-end. We expect IRE can deliver growth into FY25, led by further efficiency gains and a de-leveraged balance sheet. Proving up top-line growth initiatives through FY25 will be key to a more sustained/continued re-rate for the stock. […] IRE's share price has retreated since the 1H result and we now see sufficient value and upside to valuation.
IGO Ltd (ASX: IGO)
If you are looking for a way to invest in the lithium industry, then IGO could be the way to do it with your $7,000.
That's the view of analysts at Goldman Sachs, which believe this Australian stock could be good value right now.
Last week, the broker responded to IGO's quarterly update by putting a buy rating and $5.60 price target on it shares. It said:
We rate IGO as Buy relative to our lithium coverage, with Greenbushes cashflow defensive on persistence of low lithium prices and growth options more economic vs. peers on modest upside to lithium pricing. On valuation IGO is trading on 0.85x NAV & pricing ~US$1,065/t spodumene (peers ~1x NAV and ~US$1,190/t), with FY26/27E FCF yields remaining positive and attractive vs. peers (<0% on average).
