If you have room in your portfolio for some new additions, then it could pay to listen to what Bell Potter is saying.
The broker has recently updated its Australian Equity Core Portfolio, which aims to highlight attractive investment opportunities within the local market.
It highlights that the portfolio has "a focus on paying the right price for high-quality companies that can deliver long-term growth."
Three high-conviction picks that feature in its portfolio right now are listed below:
Image source: Getty Images
Amcor (ASX: AMC)
The first high-conviction buy could be packaging giant Amcor.
Bell Potter is particularly positive on the ASX share following its merger with Berry Global, which it expects to underpin double-digit earnings per share growth in the coming years. It explains:
The overweight stance is based on the transformative merger with Berry Global, which not only drives a strong growth outlook with expected double-digit EPS growth from significant synergies but also improves the quality of the business. The merger creates a less cyclical and more resilient company profile by increasing exposure to the defensive home & personal care and pharmaceutical sectors. The stock's current valuation appears attractive, as it seems to be factoring in a significant discount for macroeconomic uncertainty and execution risk while undervaluing these clear growth and quality enhancements.
News Corp (ASX: NWS)
This media giant could be an ASX share to buy now according to Bell Potter.
It believes the market is undervaluing News Corp's assets, providing investors with a very attractive entry point. Especially given the improving business quality as its shifts its focus to high-margin enterprise income streams. It said:
The overweight position is driven by a sum-of-the-parts valuation where the market price is seen as largely reflecting the value of its 61% stake in REA Group. This provides investors with the company's other high-quality assets, particularly the fast-growing Dow Jones business, at a steep discount. This valuation opportunity is enhanced by the company's improving business quality as it deliberately shifts its revenue mix away from cyclical advertising and towards more stable, high-margin enterprise income streams.
WiseTech Global Ltd (ASX: WTC)
A third high-conviction buy could be logistics solutions technology company WiseTech Global.
It believes the company has a bright future thanks to its CargoWise One offering. It said:
Wisetech is a leading global provider of software solutions to the logistics services industry. CargoWise One, WiseTech's core product, is a market leading SaaS solution that is used by many of the largest logistics providers in the world. In recent years, WiseTech has made numerous acquisitions in order to expand its geographical reach and expand into adjacencies, with a vision to be the operating system for its customers and broader ecosystem.
Commenting on its three top picks, the broker said:
The portfolio's active positioning reflects our conviction-led approach in what is very much a stock-picker's market. Our key overweights in names like WiseTech (WTC), Amcor (AMC) and News Corp (NWS) are driven by company-specific growth drivers and valuation opportunities that we believe are underappreciated by the market.
