Earlier this month we looked at three ASX shares that the team at Bell Potter is bullish on and has named as top picks on its Australian equities panel in September. You can read about those shares here.
Three more of the best ASX shares to buy this month according to the broker are listed below. Here's why it is bullish on these names:
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Cuscal Ltd (ASX: CCL)
The first ASX share that could be a best buy according to Bell Potter is Cuscal. The broker believes that the payments company's shares could be undervalued at current levels. Especially given its strong earnings per share growth outlook. It explains:
Cuscal is an authorised deposit taking institution (ADI) with requisite licensing, connectivity and processing capability to support payments and regulated data services. Cuscal has evolved and diversified its offering and client base, facilitating all key payment types and a range of associated services. They are differentiated as a B2B service provider (aligning it to global peers) and today, features a long-tenured and contracted client base. CCL is an attractive opportunity at 16x 12MF P/E, with 24% 2 year EPS CAGR.
Nickel Industries Ltd (ASX: NIC)
Another ASX share that is highly rated by Bell Potter is nickel producer Nickel Industries. It feels that its shares are cheap at current levels, especially given how it is on the cusp of delivering strong production and free cash flow growth. The broker said:
NIC is the only material ASX way to gain exposure to the nickel price, has a growth story, and is diversifying earnings to span Type 1 and Type 2 nickel. NIC continues to generate positive cash flows in a tough nickel market and is set to deliver major growth milestones in CY25 across its highest margin nickel operations. All up, given the forecast high production growth and potential for a very large free cash flow uplift in the next 2 years or so, NIC presents a compelling story and appears cheap at current valuation.
Universal Store Holdings Ltd (ASX: UNI)
Finally, this youth fashion retailer could be a third ASX share to buy this month according to the broker. Bell Potter likes Universal Store due to its strong earnings growth outlook and attractive valuation. It explains:
Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 10% p.a.. Valuation looks attractive, trading on a forward P/E of ~16x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.
