If you're looking for a few new additions to your portfolio in October, 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 October:
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QBE Insurance Group Ltd (ASX: QBE)
The team at Morgans are very positive on this insurance giant's shares. This is due to the company's improving performance and attractive valuation. In respect to the latter, the broker believes the QBE share price is trading on undemanding multiples.
It commented: "We see QBE as likely having positive underlying momentum into next year. QBE has been putting through top-line rate increases of around 9%, which should assist margin expansion into FY22. With QBE's balance sheet recently reset, pricing tailwinds evident and the stock relatively inexpensive trading on ~12.9x FY22F PE."
Morgans has an add rating and $13.70 price target on QBE's shares.
Santos Ltd (ASX: STO)
Another ASX share that Morgans is bullish on is Santos. The energy producer is the broker's top pick in the sector due to its diversified earnings and its planned merger with Oil Search Ltd (ASX: OSH).
Morgans explained: "We expect the resilience of STO's growth profile and diversified earnings base see it best placed to outperform against a backdrop of a continuing broader sector recovery. STO remains our top preference amongst our large-cap energy universe. With early indications supportive of our view that material synergies and enhanced growth plans will result from the OSH merger. While in good shape, we expect STO to continue gaining investor support as it executes on the opportunistic OSH merger."
The broker currently has an add rating and $8.55 price target on Santos' shares.
