With the ASX 200 continuing to ping pong back and forth, here are the ASX shares that big brokers think you should be watching.
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Ardent Leisure Group Ltd (ASX: ALG)
Citi believes Ardent Leisure could be an attractive way to play into the re-opening economy and pent-up demand narrative. The broker notes that the company's balance sheet and liquidity concerns are being resolved. Additionally, its valuation is underpinned by the theme park asset value of at least $89 million prior to rezoning.
What's interesting is that despite Citi's buy rating, its target price of 82 cents was unchanged. The Ardent Leisure share price trading at 92 cents at the time of writing. This represents a downside of 10%.
Boral Limited (ASX: BLD)
Boral recently completed the sale of its 50% share in USG Boral to Gebr Knauf KG for US$1.05 billion (A$1.33 billion). The proceeds will be used to pay down debt, return capital to shareholders and reinvest in the business.
Morgan Stanley calls this move another step in the evolution of Boral. Furthermore, Morgan Stanley believes it represents a significant transformation. This comes from a period when serious concerns were raised about its balance sheet. The broker rates Boral shares as overweight with a $6.30 target price. The Boral share price is currently fetching $5.83.
Rhipe Ltd (ASX: RHP)
It's been back and forth for the Rhipe share price since March last year.
Ord Minnett believes that it could be Rhipe's time to deliver some meaningful shareholder returns. This comes with an accumulate rating and $2.45 target price.
The broker's commentary highlights the company's recent acquisition of EMT Distribution, a cybersecurity distribution specialist. It believes this move will broaden Rhipe's exposure to a growing cybersecurity market. Additionally, it plays a role in its broader strategy to diversify from its core cloud subscription offering.
The deal will be immediately earnings accretive in FY22, and greater revenue synergies through cross-selling may be realised in the near-term. Overall, Ord Minnett is bullish on Rhipe's growth both organically through increased cloud software adoption and through its growth via acquisition.
With Rhipe shares currently trading at $1.80, the broker's target price represents a significant 36% upside.
