2 more of the best ASX share ideas according to this leading broker

These two ASX shares are highly rated…

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If you're looking for a few new additions to your portfolio in September, then look no further.

Analysts at Morgans have picked out a number of ASX shares that they class as their best ideas for the month.

The first two I looked at can be found here. Whereas below are two more that the broker rates highly in September:

Transurban Group (ASX: TCL)

Morgans is a fan of this toll road operator and appears to believe it would be a top long term option. This is due to the quality of its assets and its expectation for dividends to rebound quickly once lockdowns and border closures end.

It commented: "We think TCL will continue to be attractive to investors given its market cap weighting (important for passive index tracking flows), the high quality of its assets, management team, balance sheet, and growth prospects. Watch for rapid recovery in DPS alongside traffic recovery and WestConnex acquisition prospects. A negative overhang is the contaminated soil disposal issues related to its West Gate Tunnel Project."

However, despite being on its best ideas list, the broker still only has a hold rating and $14.26 price target on its shares. This compares to the latest Transurban share price of $13.82.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX share the broker is positive on is Treasury Wine Estates. Morgans acknowledges that there are risks to the reallocation of its wine from China, but has been very impressed with the performance of its US business. It also believes the company is undervalued based on a sum of the parts (SOTP) valuation.

Its analysts explained: "TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets. However, outside of China, its key markets, particularly the US, are recovering faster than expected from COVID. The new business units centred around the brands, are now fully in place and we are excited to see what they can earn with TWE effectively creating the benefits of a demerger without the extra costs. It also demonstrates that the SOTP is worth materially more than the whole. It shines a light on Penfolds and its best-in-class margins and may ultimately lead to corporate activity in some form in the future. We rate this management team highly."

Morgans has an add rating and $14.01 price target on the company's shares. This compares favourably to the current Treasury Wine share price of $12.28.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. 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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