Australia's leading investment analysts are always on the lookout for ASX share opportunities that could generate attractive performance.
Share prices are changing all the time, so good value can quickly appear.
If a single analyst thinks a business is a buy, then it's worth thinking about. If there are multiple brokers that suggest an ASX share is a buy then that may imply there's a good opportunity there. Or, it may be all of those analysts are wrong at the same time.
With that in mind, here are two ASX shares that are highly-recommended:
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Nickel Mines Ltd (ASX: NIC)
Nickel Mines holds an 80% economic interest in the Hengjaya nickel and Ranger nickel projects, both of which operate two line rotary kiln electric furnace (RKEF) plants producing nickel pig iron (NPI) within the Indonesia Morowali Industrial Park.
It also recently bought an 80% interest in the Angel Nickel project. In December 2021, it announced the signing of an agreement with Shanghai Decent to acquire a 70% interest in the Oracle nickel project.
The ASX share and Shanghai Decent also committed to reducing carbon emissions and have undertaken to explore transitioning its energy sources to renewable energy and other lower carbon emitting solutions. Solar is one main focus.
Nickel Mines is currently rated as a buy by at least four brokers, including Macquarie Group Ltd. The price target is $1.70, which is approximately 20% higher than where it is right now. The broker thinks that Chinese demand will help the nickel price.
Whitehaven Coal Ltd (ASX: WHC)
Whitehaven is one of the largest coal miners in Australia. It operates four mines (three open-cut and one large underground mine) in the Gunnedah Coal Basin of NSW. It also has two near-term development assets, Vickery, near Gunnedah, and Winchester South, in Queensland's Bowen Basin.
It is currently rated as a buy by at least six brokers including Citi, which has a price target of $3.20 – that's a potential upside of around 15% if the broker is right. The buy rating came after a decline of the Whitehaven share price from the highs in October 2021.
The three months to September 2021 saw managed saleable coal production of 4.7mt from the ASX share. During October 2021, it saw record thermal coal prices. Management said this would help with cashflow. Prices are reportedly rising again.
It's paying down debt and expects to fully repay the debt facility early in the 2022 calendar year and to be in a net cash position by March 2022.
Whitehaven says that demand for thermal coal is "extremely strong" with supply constraints in key producing countries, causing the Asian coal market to tighten further. Logistics issues have impacted Russia and South Africa.
The miner said both thermal and metallurgical coal prices are forecast to remain "well supported" due to strong demand and continuing supply tightness.
