This top fund manager called buying these major ASX stocks

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Key Point

  • Fund manager Wilson Asset Management (WAM) gave an overview of two potential ASX stocks.
  • The first strain is the pathology business Australian Clinical Labs, which benefits from high levels of COVID testing.
  • The second company is Johns Lyng’s construction and recovery service, which is expanding its market share and opening up new growth opportunities.

Wilson Asset Management (WAM), a major fund manager, sees two ASX shares in its portfolio as buying.

Each month, WAM talks about some of the best-performing businesses and outlines the bullish factors for thinking about equities.

Two of the hottest ASX stocks this month WAM Research Limited (ASX: WAX) When WAM Capital Limited (ASX: WAM)You may target opportunities from the smaller end of ASX, as in the following two cases.

Australian Clinical Labor Limited (ASX: ACL)

The Australian Clinical Lab is described as a leading provider of pathology services in Australia, with 86 accredited laboratories serving more than 8 million people annually.

In December, Australian Clinical Labs raised its forecast for net income after tax (NPAT) for the first half of 2010 from $ 116.3 million to $ 128 million. This has increased from the previous guidance of $ 86.3 million to $ 94.9 million.

Fund managers say ASX stocks are experiencing strong demand coronavirus Tested especially during the outbreak of Omicron variants, it recently completed the acquisition of Medlab Pathology, doubling its market share in New South Wales to 20.4%.

WAM believes that Australian Clinical Labs is a high quality pathology business that can continue to grow organically through gaining market share due to its “excellent technology and processes”. Fund managers believe that the Australian Clinical Labs balance sheet is very strong and has the potential to increase profits in the future.

Johns Lyng Group Ltd (ASX: JLG)

Another ASX share that WAM likes is Johns Lyng. Building and restoration services For assets and contents damaged by insurance accidents such as shocks, weather and fire, all over Australia.

It operates in all major metropolitan areas and high-risk areas such as Far North Queensland.

WAM said in December that it announced the acceleration of its growth strategy in the United States by acquiring Reconstruction Experts, a leading provider of insurance-focused vendor-managed repair services, for US $ 144 million. did.

This acquisition is called very strategic and has been added to the company’s EPS, equivalent to 7.8 times. Interest, taxes, depreciation and profit before depreciation (EBITDA) 12 months until June 30, 2021.

The fund manager has decided to invest in the Johnslin Group as the largest and most sophisticated provider of emergency construction work, based on the view that the company will continue to grow through market share gains and acquisitions.

WAM believes the recent acquisition adds another key growth pillar that supports long-term goals and revenue growth.

This top fund manager called buying these major ASX stocks

Source link This top fund manager called buying these major ASX stocks

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