Do you have $3,000 available to invest in Australian stocks right now?
If you do, then it could pay to take a look at the two named below that have recently been rated as buys.
Here's why analysts think these stocks could be good destinations for your hard-earned money:
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Coles Group Ltd (ASX: COL)
Analysts at Bell Potter think that supermarket and liquor retail giant Coles could be a great option for investors right now.
Its analysts recently initiated coverage on the Australian stock with a buy rating and $21.55 price target. Based on its current share price of $17.97, this implies potential upside of 20% for investors over the next 12 months.
This would turn a $3,000 investment into approximately $3,600 if Bell Potter is on the money with its recommendation. It also expects a 3.8% fully franked dividend yield in FY 2025, which would generate dividend income of approximately $110.
Commenting on its bullish view of the stock, the broker said:
We initiate coverage with a Buy rating. While we see FY25e as a year of consolidation on a reported basis, we see COL as providing an attractive earnings growth profile through to FY27e on an underlying basis, with high levels of cash generation supporting growth in dividends. In addition, at 9.1x FY25e EBITDA, COL continues to reflect relative value compared to WOW (~5% discount).
Nextdc Ltd (ASX: NXT)
Analysts at Morgans think that NextDC could be an Australian stock to buy now. It is a leading data centre operator with a growing network of operations across the Asia-Pacific region.
Morgans currently has an add rating and $20.50 price target on its shares. This suggests that upside of 18.5% is possible for investors over the next 12 months. If the broker is on the money with its recommendation, it would turn a $3,000 investment into approximately $3,555.
The broker believes that NextDC is well positioned to benefit from significant and ongoing structural demand for data centre capacity. It said:
Given the size of NXT's order book it appears there are more costs associated with scaling up in FY25 than anticipated by the market but the size of the opportunity remains substantial and the opportunity and outlook bright. NXT is well positioned to capitalise on significant and ongoing structural growth driving increased demand for data centres, which is fuelled by business digitisation (colocation), cloud computing, and Generative Artificial Intelligence (Gen AI). Existing facilities are contracted and gradually filling up over the next five years, with new ones coming online. NXT is expected to substantially expand its footprint and continue winning new business.
