3 ASX shares rated as strong buys by brokers

The 3 ASX shares in this article are rated as strong buys by brokers, including tech stock FINEOS Corporation Holdings PLC (ASX:FCL).

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There are some ASX shares that a number of brokers like and have rated as 'buys'

It can be quite hard to find good businesses that are trading at a good price. One investor might say that BHP Group Ltd (ASX: BHP) is a good buy, whilst another might say that Woolworths Group Ltd (ASX: WOW) is the share to buy.

Brokers are constantly looking at businesses and share prices, thinking about what would be a good investment. There are various brokers out there like Bell Potter, Macquarie Group Ltd (ASX: MQG) and UBS that provide different recommendations about shares.  

With that in mind, these ASX shares are liked by more than one broker. Of course, this still isn't a guarantee of success – they could all be herding together.

FINEOS Corporation Holdings PLC (ASX: FCL)

FINEOS is an ASX share liked by at least three brokers at the moment, including UBS which likes the tech company for the long-term growth opportunity.

This business says that it's a global player in the software space for the employee benefits and life, accident and health industry.

FINEOS operates a platform which has technology for a number of different areas for clients like new business, claims, policy, billing and absence. Its software is designed to manage the structure and relationships of group and individual insurance processing to optimise plan, coverage and data management, operational processing, and business intelligence.

The company is aiming to increase its market share over time. For the quarter ending 31 December 2020, FINEOS generated 69% growth of its cash receipts to €28.2 million.

City Chic Collective Ltd (ASX: CCX)

City Chic is an ASX share that's liked by at least three brokers, including Morgan Stanley.

It's a retailer of plus-size clothes, footwear and accessories for women. It operates through a number of different brands including Avenue, Evans, CCX, Hips & Curves and Fox & Royal.

This business isn't just a bricks and mortar operator in Australia and New Zealand. It's currently selling around 70% of its products online, with more than 40% of revenue being generated in the northern hemisphere.

City Chic recently acquired Evans in the UK. It's not taking over the retail store chain, but it is acquiring the online assets and the wholesale business. Those two segments generated £26 million of sales for the 12 months to August 2020. City Chic said that the retail store network had been shrinking in recent years as more customers transition to the digital channel. Evans bought this business for $41 million, funded from existing cash.

City Chic says that this acquisition will give the company a platform to launch in the $9 billion UK market. It's also confident that it can use its lean, customer-centric operating model to drive revenue growth and cost efficiencies in the existing business.

Brickworks Limited (ASX: BKW)

Brickworks is an ASX share that's liked by at least three brokers, including UBS.

The broker thinks that the housing industry has good growth potential in 2021 as long as there aren't any rate hikes or credit lending restrictions.

Brickworks has several different segments that serve the construction industry in Australia. It manufactures and sells bricks, paving, roofing, masonry, cement and precast.

The company also has its joint venture industrial property trust with Goodman Group (ASX: GMG) which is expected to increase in value significantly once the large warehouses for both Amazon and Coles Group Ltd (ASX: COL) are completed. The gross value of the trust's assets are expected to be higher than $3 billion once completed, which is also expected to lead to a 25% increase in the net rental profit distributions to Brickworks.

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends FINEOS Holdings plc. The Motley Fool Australia owns shares of and has recommended Brickworks and Macquarie Group Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended FINEOS Holdings plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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