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Analysts name 2 excellent ASX shares to buy and hold

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There are a lot of shares to choose from on the Australian share market.

In order to narrow things down for investors, listed below are two ASX shares that are rated highly by analysts. Here’s why they could be top buy and hold options:

Lovisa Holdings Limited (ASX: LOV)

The first ASX share that could be a top buy and hold option is Lovisa.

Morgans is very positive on Lovisa due to its global expansion plans and its new and highly experienced CEO, Victor Herrero. The broker sees a huge opportunity for Lovisa in the massive US market. It explained:

Lovisa’s global footprint now spans 22 countries. In our opinion, investors can expect this number to increase steadily while, at the same time, Lovisa builds out its presence in its existing markets. We do not think there is any lack of opportunity. In the US, for example, Lovisa now has 81 stores, representing 0.25 stores for every million people), compared to Australia with 158 stores, 6.15 stores for every million people.

Morgans has an add rating and $24.00 price target on its shares.

Another ASX share that could be a top buy and hold option is TechnologyOne. It is an enterprise software provider servicing the government, financial services, health and community services, education, and utilities and managed services markets.

TechnologyOne appears well-placed for growth thanks to its shift to a software-as-a-service (SaaS) model and its UK expansion. It also has defensive qualities, which Goldman Sachs finds particularly attractive in the current environment. It commented:

Defensive end markets (public sector and education) with IT spending that are relatively resilient to recessions. Contractual CPI pricing pass-through, high recurring revenue, minimal churn (<1%), high margins and net cash are attractive attributes in a slowing economy. In addition, TNE’s recent result highlight continued momentum towards the +A$500mn FY26 ARR target, providing valuable earnings growth visibility over coming years, in our view.

Goldman has a buy rating and $13.30 price target on the company’s shares.

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