With a new year upon us, now could be an opportune time to start looking at any additions you want to make to take your portfolio to the next level in 2021.
Listed below are 10 high quality ASX shares you might want to consider:
a2 Milk Company Ltd (ASX: A2M)
A2 Milk Company is a leading infant formula and fresh milk company. It differentiates itself in a crowded market with its focus on A2-only products. The company claims this protein makes its products easier to digest than regular milk, which has gone down particularly well with consumers in China. While FY 2021 looks set to be a rare off-year because of COVID-19 headwinds, management remains positive on its long term prospects. Analysts at Macquarie agree and have recently put an outperform rating and $17.95 price target on its shares.
Altium Limited (ASX: ALU)
Altium is a printed circuit board (PCB) design software provider which is aiming for market dominance. Management believes it can achieve this thanks to the quality of its software and particularly its new cloud-based Altium 365 platform. Given the proliferation of electronic devices due to the Internet of Things and artificial intelligence markets, this certainly is a lucrative market to dominate. Analysts at Morgan Stanley are confident on its prospects. They have an overweight rating and $40.00 price target on the company's shares.
Bravura Solutions Ltd (ASX: BVS)
Bravura Solution is a provider of software and services to the wealth management and funds administration industries. It has a number of quality products that are being used by many of the world's largest financial institutions. This includes its Sonata wealth management platform and the Midwinter financial planning software. It is another company which has struggled with the pandemic. However, analysts at Goldman Sachs believe it is worth dealing with this short term pain for the long term gains. They have a buy rating and $4.50 price target on Bravura's shares.
CSL Limited (ASX: CSL)
CSL is the biopharmaceutical giant behind the CSL Behring and Seqirus businesses. These two businesses are leaders in their fields and have a host of lucrative therapies and vaccines generating billions in revenue each year. The company also invests significantly in research and development and will be putting almost US$1 billion into these activities in FY 2021. This helps to ensure that the company stays ahead of the curve and has a pipeline of products ready to save lives and underpin solid revenue growth in the future. UBS is a fan of the company and has a buy rating and $346.00 price target on its shares.
Kogan.com Ltd (ASX: KGN)
One of the biggest success stories on the Australian share market in 2020 has been this ecommerce company. While it has been performing positively in recent years, its growth went into overdrive this year when the pandemic accelerated the shift to online shopping. This led to significant customer, sales, and earnings growth in FY 2020. Pleasingly, this has continued into the new financial year as well and looks set to be bolstered by value accretive acquisitions. This strong form has caught the eye of Credit Suisse. It recently put an outperform rating and $20.60 price target on its shares.
Nanosonics Ltd (ASX: NAN)
Nanosonics is the infection prevention specialist behind the trophon EPR disinfection system for ultrasound probes. This product is regarded as the best in its class and has been growing its market share consistently over the last few years. This is good for two reasons. One is the unit sales, the other is the recurring revenues it generates from consumables. Management is planning to release new products targeting unmet needs in the coming years. If they are a success, they could give its growth a big boost. UBS has a buy rating and $7.20 price target on Nanosonics' shares. It believes the company is well-placed to benefit from the growing importance of infection prevention following the pandemic.
Nearmap Ltd (ASX: NEA)
Nearmap is a leading aerial imagery technology and location data company with operations in the ANZ and North American markets. While its growth has been a bit inconsistent in recent times, management appears confident it is back on track. So much so, it is aiming to deliver annualised contract value (ACV) growth of 20% to 40% per annum over the long term. This growth is expected to be driven by new growth initiatives, geographic expansion, and the launch of its latest AI product. Morgan Stanley has an overweight rating and $3.10 price target on Nearmap's shares.
NEXTDC Ltd (ASX: NXT)
NEXTDC is a technology company that provides innovative data centre outsourcing solutions, connectivity services, and infrastructure management software. It has a partner ecosystem which hosts Australia's largest independent network of carriers, cloud, and IT service providers. NEXTDC has been a big winner this year after the pandemic accelerated the shift to the cloud and led to significant demand for its data centre capacity. In fact, demand was so strong that it had to bring forward development plans. This appears to have impressed Goldman Sachs. Last month its analysts put a buy rating and $13.20 price target on its shares.
SEEK Limited (ASX: SEK)
SEEK is an online job listings company. As well as dominating the ANZ market, the company has a number of international operations. This includes its Zhaopin business, which is one of the leaders in the massive China market. FY 2020 was a difficult year because of the pandemic, but it is bouncing back strongly now the worst is over. Credit Suisse has been impressed with its recovery from the pandemic and put an outperform rating and $28.50 price target on its shares last month.
Xero Limited (ASX: XRO)
Xero is a leading cloud-based business and accounting software provider. It has been growing its customer numbers and recurring revenues at a strong rate for many years. This has been driven by the quality of its offering, the shift to the cloud, and the stickiness of its product. Xero boasts an ultra low churn level, which gives it a firm foundation to build on. Given the size of its market globally and the potential opportunity it has to monetise its app ecosystem, Goldman Sachs recently slapped a buy rating and $157.00 price target on its shares.
