MGR, STO, and TLS: Three “Strong Buy” ASX Shares to Consider

ASX-listed companies Mirvac Group (AU:MGR), Telstra Corporation Limited (AU:TLS), and Santos Limited (AU:STO) have been rated a Strong Buy by analysts.

Among them, shares of Santos Limited and Mirvac Group offer almost similar upside potential of more than 19%. Meanwhile, Telstra offers a modest growth rate of 11%.  

Let’s take a look at these shares in detail.

What is the Forecast for Mirvac?

Mirvac is a diversified Australian property group. It owns and manages multi-billion-dollar assets across office, industrial, retail, and build-to-rent segments. 

Mirvac continues to benefit from a high occupancy rate (97.5% at the end of Q3) despite economic uncertainty. Further, its focus on increasing scale in the living and Sydney-based industrial sectors augurs well for growth. In addition, the resiliency of its cash flows, led by a high-quality investment portfolio and solid developmental pipeline, are positives and keep analysts bullish. 

Last week, Ord Minnett, a leading Australian wealth management, and stock broking company, reiterated the Buy rating on MGR stock and expects it to grow by more than 37%. Meanwhile, on June 20, Tom Bodor of UBS upgraded shares of MGR to Buy from Hold. He expects MGR stock to rise by 13%.

Overall, MGR shares have a Strong Buy rating on TipRanks with four Buy versus one Hold recommendations. At an average price forecast of AU$2.69, analysts predict over 19% hike in the share price for the next 12-month period.

What is Telstra’s Price Prediction?

Telstra is a diversified telecommunications and information services company in Australia. It offers telecommunications, media, and technology products and services. 

Telstra’s core mobile business continues to perform very strongly, led by its superior network experience and plan simplification. Further, its focus on lowering churn and reducing costs augurs well for growth and supports analysts’ bullish view. 

Telstra also announced that it would partner with Elon Musk’s Starlink to offer broadband and voice services in rural Australia, which will further strengthen its competitive positioning.

Last month, HSBC analyst Neale Anderson reiterated his Buy rating on TLS stock. His price target indicates over 21% upside potential. 

Overall, shares of Telstra command a Strong Buy rating on TipRanks with five Buy versus one Hold recommendations. At an average price forecast of AU$4.80, analysts predict another 11% upside in the share price for the next 12-month period.

What is the Price Target for Santos stock?

Santos is a leading energy company with operations across Australia, Papua New Guinea, North America, and Timor-Leste. It is the biggest domestic gas supplier in Australia and a leading LNG supplier in the Asia-Pacific region. 

Analysts are bullish on the shares of Santos, as they expect it to benefit from its focus on building new revenue sources through decarbonization projects. Further, its geographically diversified long-life assets and long-term contracts bode well for its ability to generate strong free cash flows and enhance its shareholders’ returns.

On June 30, Mark Wiseman of Macquarie reiterated a Buy on Santos stock. Wiseman expects Santos stock to increase by over 31%. 

Overall, shares of Santos sport a Strong Buy rating on TipRanks based on eight unanimous Buy recommendations. The average price forecast of AU$9.07 implies an upside of 19% from the current price level. 

Conclusion

Analysts maintain a positive outlook on these three ASX shares, expecting positive momentum and continued growth in their respective share prices.