2 five-star ASX stocks analysts love
Image source: Getty Images
If you’re looking for some quality additions to your portfolio this month, the two ASX stocks listed below might be worth considering.
They were seen as stocks with the potential to generate strong returns for investors in the future. Here is why they are highly rated:
The first five-star title to review is CSL. This biotherapy giant could be one of the highest quality companies ever produced in Australia.
CSL has been around for over a century. It was founded in 1916 with the aim of meeting the needs of a nation isolated by war. Today, the company is a global giant with a portfolio of therapies and vaccines that save countless lives around the world.
One of the keys to its success has been the company’s high level of investment in Research and development. Each year, CSL reinvests approximately 10% to 12% of its turnover in its activities. This ensures that CSL is at the forefront of innovation in the industry and has a potentially lucrative product portfolio.
The company is struggling with plasma collections due to the pandemic. And while this may weigh on its performance in FY2022, due to a lag between collection and production, it is only expected to be short lived. In fact, collections are already rebounding strongly and have been tilted to hit pre-COVID levels later this year.
In light of this, with the CSL share price still trading significantly lower than its peak, now might be a good time to make a long-term investment.
One broker who thinks this is the case is Credit Suisse. He recently upgraded CSL shares to an outperformance rating with a target price of $ 315.00.
Another potential five-star title could be Goodman Group. It is one of the first integrated commercial and industrial property companies in the world. It owns, develops and manages industrial real estate globally. This includes warehouses, large-scale logistics facilities, and business and office parks.
At last count, Goodman had $ 52.9 billion in assets under management worldwide, 366 properties under management and more than 1,600 clients. Regarding the latter, Goodman counts as customers Amazon, DHL, Showpo and Walmart.
The company is focused on investing and developing high quality industrial properties in strategic locations, close to large urban populations and in and around the world’s major gateway cities, where demand is high and transformational change is creating significant opportunities. This includes gateway cities such as Los Angeles, Paris, Sydney, Shanghai, and Tokyo. This strategy has worked incredibly well and has led Goodman to generate consistent strong growth in earnings and distributions.
One broker who is confident that this positive form will continue is Citi. The broker currently has a buy rating and a target price of $ 22.10 on its shares.