The S&P/ASX 200 Index (Index:^AXJO) is taking off again as rising commodity prices and renewed hope for a COVID-19 vaccine lifted sentiment.
The top 200 stock benchmark jumped 1.2% to over 6,000 points during lunch time trade with the Rio Tinto Limited (ASX: RIO) share price and Fortescue Metals Group Limited (ASX: FMG) share price doing the heavy lifting.
But there's value to be found outside of the miners and top brokers have listed their latest ASX buy ideas.
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Rising tide lifting this ship
The Austal Limited (ASX: ASB) share price jumped 2% to $3.30 at the time of writing after Citigroup reiterated its "buy" recommendation on the stock.
The shipbuilder is a hot pick even though it wasn't picked by the US Navy to build the next-gen guided-missile frigates FFG(X).
But never say never. While Austal lost out on the original tender, Citi reckons it could get a second bite of the cherry if the US decides to appoint a second builder.
Second chance
Such a move makes sense as it will allow the Navy to commission more ships more quickly. It can also achieve economies of scale while putting downward pressure on costs by including a bit of competition to the program.
"However, even if this does not eventuate, there appears to be plenty of work to go around in the US, and the Navy appears to be considering the production capacities of its shipbuilders in order to maintain its industrial base," said Citi.
The broker's 12-month price target on Austal is $4.23 a share.
Melbourne lockdown priced in
Meanwhile, the Premier Investments Limited (ASX: PMV) share price dipped 0.3% to $16.09 during lunch. Investors are fretting over the impact of the second Victorian coronavirus lockdown on the retail group.
But Macquarie Group Ltd (ASX: MQG) aren't worries and repeated its "outperform" recommendation on the stock.
The broker estimated that 19% of the group's Australian store network is temporarily closed due to what's happening in Melbourne. This represents 13% of its global store network and poses a risk to Premier's earnings if online sales and growth in other states do not offset the loss.
Premium buy at discount price
Even if that was the case, the stock looks cheap. Macquarie estimates that its trading at a 40% discount to peers like Lovisa Holdings Ltd (ASX: LOV) and City Chic Collective Ltd (ASX: CCX).
Macquarie's 12-month price target on Premier is $20.11 a share.
