There are a lot of options for investors to choose from on the Australian share market.
To narrow things down, I've taken a look at which ASX shares analysts are recommending investors buy right now.
Two that have been given buy ratings are listed below. Here's what you need to know about them:
Image source: Getty Images
Santos Ltd (ASX: STO)
If you're happy to invest in the resources sector then you might want consider energy producer Santos, which has recently completed its merger with Oil Search.
Morgans is a fan of Santos and sees significant upside for its shares at the current level. The broker has an add rating and $8.65 price target. And while this is notably higher than the latest Santos share price of $6.06, the broker feels it is still conservative.
The broker commented: "We view our target price as conservative, with a case for value upside from de-risking of growth projects and securing of synergies. The merger leaves STO well positioned to control its own future in increasingly difficult ESG-driven debt and equity markets. We maintain our Add rating."
TechnologyOne Ltd (ASX: TNE)
This enterprise resource planning software provider could be a share to buy in 2022 according to the team at Bell Potter.
The broker likes TechnologyOne due to its belief that it can grow its earnings at a solid rate for many years as it continues to transition to a software-as-a-service business. Bell Potter has a buy rating and $15.00 price target on the company's shares.
It commented: "The key competitive advantage of the company is it has developed a fully integrated SaaS solution of its software and is now switching customers to this solution. The migration is now >50% complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to re-rate to that of a pure SaaS company."
