Analysts have rated these ASX shares a 'strong buy'. Here's what I think.

Experts are sure these shares are heading up…

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Key points

  • WiseTech Global (ASX: WTC) is currently experiencing volatility with a 44% decline year-to-date, amidst insider trading allegations involving its executive chair, yet ASX broker Morgans rates it a 'buy' due to its strong balance sheet and high margins.
  • Rural Funds Group (ASX: RFF) is appealing due to its diverse farming assets, with ASX broker Bell Potter rating it a 'buy,' projecting a 27.6% upside despite its historical price drop, making it attractive for income-focused investors.
  • Despite personal reservations about REITs' sensitivity to interest rates and lack of franking credits, the stability of farmland assets and a yield over 6% make Rural Funds a potentially solid income investment.

There's a common expression about opinions, and how, like the proverbial, everyone's got one, that I think applies well to investing. As with many things, the more of them there are, the less valuable they can be. But some are still more valuable than others. And I think that label applies well to the views of investing professionals who invest in ASX shares for a living.

So today, let's check out the opinions of some experts on two prominent ASX shares. These experts have labelled these stocks as strong buys, so let's get into why, and whether I would follow their advice.

2 ASX shares rated as buys right now

WiseTech Global Ltd (ASX: WTC)

First up is ASX tech share Wisetech Global. Wisetech has had a successful (but volatile) journey over the past few years. Right now, it is in one of its rough patches, with the logistics solutions provider down almost 44% year to date. This looks to have been prompted by both a poor reaction to Wisetech's FY2024 results in August, as well as the ongoing antics of its co-founder, former CEO and current executive chair, Richard White.

White has been embroiled in quite a few scandals in recent years, the most recent being the revelations that Wisetech's Sydney office was raided in October after alleged insider trading done by White and other Wisetech employees.

Despite this, ASX broker Morgans has recently given Wisetech a 'buy' rating, with a 12-month share price target of $127.50. That would see the company rocket more than 80% from its current pricing if accurate. Morgans is eyeing off the company's admittedly strong balance sheet and high margins. However, I would not touch Wisetech shares, despite this broker's bullishness.

This company is indeed a success story. But White's repeated, if alleged in some cases, scandals put me off. The chair personally controls a massive chunk of the company, and is not someone I want to align my personal financial prospects with. As Warren Buffett once said, "A CEO's behaviour has a huge impact on managers down the line".

Rural Funds Group (ASX: RFF)

Next up, we have ASX share and real estate investment trust (REIT), Rural Funds Group. I have always found this REIT appealing, thanks to its diverse base of farming assets. These include cattle farms, vineyards, and tree nut orchards. However, I have fortuitously never bought it, as Rural Funds units are down substantially in recent years, having lost 25% or so since early 2023 at today's pricing. Saying that, the fund is up a healthy 9.4% in 2025 to date, so things are looking up.

ASX broker Bell Potter certainly thinks so too. It recently gave this ASX share a 'buy' rating, with a unit price target of $2.45. That implies a potential upside of 27.6% from where Rural Funds is today.

I have never really liked investing in REITs, given their high sensitivity to interest rates and lack of franking credits. Most of the REITs on the ASX don't have pretty long-term unit price graphs.

However, I think Rural Funds is worth a buy for income investors looking to secure reliable dividend distributions. Farmland is a different kettle of fish to office blocks and retail space, so I think Rural Funds' future, and dividend safety, is relatively secure. Plus, this ASX share offers a hefty (if unfranked) yield of over 6% today.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended Rural Funds Group and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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