Morgans names more of the best ASX shares to buy

The broker has given these shares a big thumbs up.

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If you're looking to invest your hard-earned money into the share market, then it could be worth looking at the ASX shares listed below.

That's because they have been named on the best ideas list of Morgans. Here's what the broker is saying about them:

Objective Corporation Ltd (ASX: OCL)

Morgans is feeling very positive about this content, collaboration, and process management solutions provider.

The broker notes that the company's best-in-class specialist software services the public sector and highly regulated industries. It highlights that this makes its earnings defensive and believes it will underpin strong growth over the long term. The broker said:

Because of this defensive customer base, the company has strong recurring revenue and low levels of churn. Global Public Sector software spend is anticipated to grow at a low double-digit rates over the near term as governments look to streamline workflow, improve security, and modernise legacy IT infrastructure. We see Objective as being a beneficiary of this trend.

[W]e believe Objective should be well positioned to see long-term revenue growth rates and margins return in FY24 and beyond. The company is also strongly capitalised and well positioned to take advantage of M&A opportunities as private market technology valuations have contracted, which in our view could add incremental scale and scope for long-term growth.

Morgans has an add rating and a $14.00 price target on the ASX share. This implies a potential upside of almost 13% for investors.

Superloop Ltd (ASX: SLC)

Another ASX share that could be a buy according to Morgans is Superloop.

The broker believes that Superloop is the best option in the telco sector right now and highlights its strong cash flow generation. It commented:

SLC is our key telco pick. It's the fastest growing, has a solid balance sheet (virtually no debt), and the highest Free Cash Flow yield in our coverage. The share price has lifted following a substantial upgrade to earnings expectations and a takeover offer from ABB (which the SLC Board declined). Even though the share price is up ~100% over the past 6 months, earnings have more than exceeded this. EPSA and FCF have lifted ~150% over the same period so we still see good fundamental value in SLC.

Its analysts have an add rating and a $1.50 price target on its shares. This suggests a potential upside of 12% for investors over the next 12 months.

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. The Motley Fool Australia has recommended Objective. 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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