Sunday , May 16 2021

The biggest broker just hit "buy" this controversial S & P / ASX 200 (index: ^ AXJO) (ASX: XJO) shares

The risk appetite returns to the market and there is a controversial lower level that Credit Suisse believes is worthy of "buying" on the current market.

This action may seem cheap on the basis of an estimate, but it is not for the faint heart, especially before the highly anticipated G20 meeting, where US President Donald Trump will meet with his Chinese counterpart to discuss their trade war.

On S & P / ASX 200 (Index: ^ AXJO) (ASX: XJO) index is about 0.6% today with Afterpay Touch Group Ltd. (ASX: APT) stock price and Altium Limited (ASX: ALU) the stock price that leads the market higher.

But profits can be overturned if Trump and Xi Jinping can not find a way to disrupt trade tensions between the two largest economies in the world.

Let's not get too pessimistic, though while U. S. Federal Reserve signaled that it can not raise rates as much as the market expects, and massive sales in global stock pushed markets to attractive territory.

A gummy cavity

An action that seems ready to bounce is Link Administration Holdings Ltd. (ASX: LNK), according to Credit Suisse.

The price of LNK shares jumped 1.8% to 7.02 dollars after the broker upgraded the action to overcome the "neutral".

Some might call it the "Humpty Dumpty" investment platform, because in several directions they have been drawn from several forces that investors can not solve together to see how it will look over the next few years.

These forces include regulatory changes, the loss of some major contracts and the impact of acquisitions.

Back to pieces

Credit Suisse put the puzzle together and thinks it has a good side for investors who want to hold the stock for 2-3 years.

"Our analysis shows that M & A is the biggest growth driver for LNK (+ 20% of EPS from FY22E) with PEXA's most significant contributor to this growth," the broker said.

"However, we expect that organic growth will also contribute to the growth of EPS (+ 12%), fueled by inflationary prices, the growth of members of the industrial fund, the shifting of the factors for investing in higher-value pensions, the increased outsourcing , increased regulation and complexity, the expansion of new markets and the increased use of employee share plans. "

Credit Suisse has a target group of 8.30 on Link.

5 Companies that we prefer better than Link Administration

When Stock Scott Phillips shares have a buying recommendation, history suggests that it can pay to listen.

Scott recently discovered what he believed five best ASX shares for investors to buy right now … and the link administration was not one of them! That he is right – he thinks that these 5 stocks are still better buys.

Take a look at the 5 stocks

Brandon Lau, owner of Shock, owns AFTERPAY T FPO shares. The Australian state-owned Bulgarian government has shares in AFTERPAY T FPO and Altium. We may not all share the same opinions, but we all believe that, given the diversity of knowledge, it does not make better investors. Motley Fool has a discovery policy. This article contains only general investment tips (under AFSL 400691). Authorized by Scott Phillips.

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