There are some ASX shares that have been rated as buys by multiple analysts. This level of popularity could suggest there's an opportunity for investors to take advantage of.
Brokers are always on the lookout for compelling ideas at a good price. It's possible that all of these analysts are wrong at the same time.
Having said that, here are two popular, buy-rated ASX shares at the moment:
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Northern Star Resources Ltd (ASX: NST)
Northern Star Resources is one of the biggest gold miners on the ASX. With the Northern Star share price at $9.74 at the time of writing, it has a market capitalisation of $11.7 billion according to the ASX.
It's currently rated as a buy by at least four brokers, including Macquarie Group Ltd (ASX: MQG). Macquarie has a price target on Northern Star of $13, which implies a potential upside of around 30% over the next year.
The broker believes that better results at its Pogo project might help the miner. The ASX share said that in the three months to September 2021, Pogo saw 43,992 ounces of gold sold at an all-in sustaining cost of US$1,751 per ounce.
In that quarterly update, Northern Star Resources said overall gold sold totalled 386,160 ounces at an all-in sustaining cost (AISC) of A$1,594 per ounce. The average realised price was A$2,345 per ounce for the quarter, helping the business generate cash earnings of between A$165 million to A$175 million.
The company thinks it's on track to meet FY22 guidance of between 1.55 million ounces to 1.65 million ounces at an AISC of between A$1,475 per ounce to A$1,575 per ounce.
Northern Star Resources also announced it is buying Newmont's power business, Newmont Australia — which owns half of the Parkeston Power Station — for US$95 million. This gives the business greater control over its power supply in Kalgoorlie.
Reliance Worldwide Corporation Ltd (ASX: RWC)
Reliance Worldwide is a business that aims to provide high-performance, time-saving solutions for plumbing and heating systems with its brands SharkBite, Speedfit, and Holdrite.
It's currently rated as a buy by at least five brokers, including Ord Minnett which has a price target of $7.40 on the business.
The broker notes that Reliance Worldwide is achieving growth, though certain COVID-19 pandemic effects are impacting the supply chain.
In the three months to 30 September 2021, it said it experienced year-on-year sales growth in all three of its operating regions (Americas, Asia Pacific, and EMEA) with reported net sales up 8% to $246 million, while operating earnings increased 5%.
Reliance Worldwide is seeing strong underlying demand in all three regions as people invest in their homes, spending on repairs, and remodelling.
The company referenced issues relating to shipping and freight delays, materials shortages, and delays elsewhere in the construction sector. This has been particularly true in the UK where there's a shortage of transport drivers.
The ASX share is expecting demand to remain positive. These supply chain problems could prolong the current demand levels. However, the supply chain issues will likely be the strongest in the second quarter, which is the current quarter, and then lessen in the third quarter of FY22 as the business passes on price increases.
Reliance Worldwide also acquired EZ-FLO International for US$325 million. It's a manufacturer and US distributor of plumbing supplies and specialty plumbing products. This will expand the company's offering and accelerate its growth in the North American market.
According to Ord Minnett, the Reliance Worldwide share price is valued at 21x FY22's estimated earnings.
