Here's why experts are tipping these ASX shares as buys for October

Here's why analysts are feeling bullish about these ASX shares…

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A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

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With a new month approaching, what better time to look at making some new additions to your portfolio.

Two ASX shares that could be worth considering in October are listed below. Here's what analysts are saying about them:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX share to consider in October is Aristocrat Leisure.

Analysts at Morgans are recommending this gaming technology company and have an add rating and $43.00 price target on the company's shares.

This compares favourably to the latest Aristocrat share price of $33.39.

Morgans likes Aristocrat due to its attractive valuation and strong long term growth outlook. The latter could be boosted by a planned expansion into real money gaming in the near future.

It commented:

The underperformance [of its shares] means, however, that ALL's 1-year forward P/E has derated to less than 20x from a high of 30x last September. With $3.3bn of currently available liquidity, ALL has significant funding capacity for growth, even after the buyback. It has a stated ambition to build a meaningful presence in the rapidly growing online real money gaming segment, which we believe may be achieved both through organic investment and inorganic acquisitions.

Objective Corporation Limited (ASX: OCL)

Another ASX share that could be worth considering in October is Objective Corp.

It is a software company that provides content, collaboration, and process management solutions for the public sector in Asia Pacific, the USA and Europe.

After delivering a 15% increase in annualised recurring revenue (ARR) in FY 2022, the team at Goldman Sachs is expecting the strong form to continue. In fact, it expects Objective Corp's ARR growth to accelerate to 18% in both FY 2023 and FY 2024.

Goldman has a buy rating and $18.40 price target on its shares. This compares to the current Objective Corp share price of $13.21.

The broker commented:

We are attracted to management's track record of growth and margin expansion and see upside being driven from 1) new products including Build and RegWorks; and 2) expansion in the US over time. When adjusting for OCL's conservative accounting (100% of R&D expensed), robust growth outlook, defensive end markets and high franchise quality, we see valuation appeal compared to SaaS peers and believe the shares can outperform in a more challenging macro environment.

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 positions in and has recommended Objective Corporation Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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