With most brokers taking a well-earned break over the holiday period, there haven't been many notes hitting the wires.
But don't worry! Summarised below are three recent recommendations that remain very relevant today. Here's what brokers are saying about these ASX shares:
Image source: Getty Images
Flight Centre Travel Group Ltd (ASX: FLT)
According to a note out of Macquarie, its analysts retained their outperform rating on this travel agent's shares with an improved price target of $17.85. It noted that Flight Centre has signed an agreement to acquire the UK's leading online cruise agency, Iglu, for 100 million British pounds. Macquarie was pleased with the move, highlighting that Iglu has a 15% share of the UK market and upwards of 75% of online bookings. It also sees the cruise industry as attractive with further acquisition opportunities. Macquarie points out that Flight Centre is leveraging its scale and balance sheet to accelerate its growth with strategic acquisitions. Outside this, Macquarie likes Flight Centre due to its belief that the company will achieve its guidance in FY 2026, which is being supported by improving consumer trends. The Flight Centre share price is trading at $14.80 this afternoon.
NextDC Ltd (ASX: NXT)
A note out of Ord Minnett reveals that its analysts retained their buy rating on this data centre operator's shares with an improved price target of $20.50. The broker was pleased to see that NextDC has signed an agreement with ChatGPT's owner OpenAI for its proposed S7 data centre in Eastern Creek, Sydney. It notes that this centre will be a hyperscale AI campus and the largest in the southern hemisphere with a capacity of 650MW. It thinks there is a lot to like from the plan and believes it could be a big boost to its valuation if it goes ahead as planned. The NextDC share price is fetching $12.30 at the time of writing.
Santos Ltd (ASX: STO)
Analysts at Citi retained their buy rating and $7.25 price target on this energy giant's shares. According to the note, the broker believes that Santos is well-positioned for a re-rating when the oil price bottoms out. It highlights that the company is emerging from its capital expenditure cycle with stronger cash margins, rising free cash flow, and higher quality earnings. In addition, the broker expects improving returns on invested capital (ROIC) through the next decade and Santos' gearing to normalise as the Barossa and Pikka operations ramp up. In light of this, the broker thinks now could be a good time for investors to pick up the company's shares. The Santos share price is trading at $6.10 on Monday afternoon.
