You don't need a massive budget to start investing in the share market. In fact, with as little as $200, you can begin building exposure to some of the ASX's most exciting companies.
But which ASX shares could be buys right now? Let's take a look at three no-brainer picks that analysts rate as buys:
DroneShield Ltd (ASX: DRO)
DroneShield is an Australian defence technology company that is rapidly gaining traction. Specialising in AI-powered counter-drone and electronic warfare systems, DroneShield is positioned squarely in the path of rising global defence spending.
Recent contract wins – including its largest ever, valued at $61.6 million – highlight growing demand for its proprietary technologies. And with NATO members committing to increased military expenditure and geopolitical tensions escalating globally, the environment appears favourable for long-term growth.
It is for this reason that Bell Potter currently has a buy rating and $2.60 price target on its shares.
ResMed Inc. (ASX: RMD)
Another no-brainer ASX share to buy could be ResMed. It is a sleep apnoea and respiratory care specialist that has delivered strong long-term growth thanks to its dominant market share, robust margins, world class products, and large addressable market.
But if you thought that growth was nearing an end, think again. ResMed's core market remains seriously underpenetrated. Sleep disorders are still widely undiagnosed, and ageing populations only add to the growth opportunity. In fact, it is estimated that there are over 1 billion sufferers of sleep apnoea globally with most unaware they have the condition. But with education increasing and even smart watches now diagnosing it, ResMed's addressable market is likely to continue growing strongly for many years.
Macquarie is bullish on the company and has an outperform rating and $48.00 price target on its shares.
Xero Ltd (ASX: XRO)
Accounting software leader Xero has long been a favourite of ASX investors – and for good reason. The company continues to expand its customer base across Australia, New Zealand, and key international markets like the UK and North America.
The ASX share recently announced the acquisition of Melio, a US-based accounts payable platform. This deal could be a game-changer, dramatically enhancing Xero's value proposition in the world's largest SMB market.
While it's not the cheapest tech stock on the market, Xero has proven its ability to scale while remaining disciplined with costs. With a strong balance sheet, sticky customer base, and huge runway ahead, this is a business many investors would love to own more of.
UBS is bullish and has a buy rating and $215.00 price target on its shares.
