'Hungry for growth': Multiple funds name same 2 ASX shares that look good to buy now

One stock rose spectacularly in August, while the other struggled during reporting season. But both are keepers, according to QVG and Celeste.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In the stock-tipping realm, investors come across many varied opinions about which ASX shares to buy.

No one has a crystal ball, so even the experts have different investment styles and attributes they look for in a company. 

Diversity of opinion is healthy, but it can make it confusing for the average punter.

So when two different funds name the two same stocks for praise, you'll want to check for a blue moon or buy a lottery ticket.

But that's exactly what's happened this week.

Two young boys, identical twins, dressed in suave business suits and ties wear sparkly masks over their eyes and pout at the camera.

Image source: Getty Images

A star performer in August to keep for the long term

The team at QVG Capital is loving their investment in PSC Insurance Group Ltd (ASX: PSI) right now.

They were especially pleased seeing the share price rise 18% during August, as its results were delivered.

"PSC Insurance just keeps delivering," QVG analysts said in a memo to clients.

"The company produced the trifecta: an earnings beat, great cash flow and an upgrade to FY23 consensus earnings expectations."

The team noted that PSC's business of insurance-broking is "a competitively advantaged industry" and similar companies around the world are currently rewarding shareholders handsomely. 

"What we like most about PSC, however, is their management team who permeate a culture that is just as hungry for organic as inorganic growth."

Celeste Funds Management analysts, in their memo to clients, also noted the company's financials "exceeded both market expectations and previous company guidance".

That team also loves where management is taking ASX share PSC.

"Management provided some further clarity on their medium-term target which includes growing EBITDA to $130 million to $140 million by FY25," read the memo.

"Pleasingly the company is fully funded to achieve this goal and as such remains an attractive investment capable of generating growing, defensive and long-term cash flows."

PSC shares are up 4.24% year to date.

A pauper in August to keep for the long term

On the other side of the coin is ASX telco share Aussie Broadband Ltd (ASX: ABB), which painfully lost almost a quarter of its value over August.

But both Celeste and QVG Capital are still bullish on the internet services provider.

"Aussie Broadband delivered earnings ahead of guidance and grew retail broadband market share by nearly 2%," read the Celeste memo.

"Aussie Broadband now makes up 6.46% of the NBN market and was the fastest growing NBN service provider this quarter."

QVG Capital did note that the company downgraded its 2023 guidance due to "wage inflation and National Broadband Network cost pressures".

Both camps agreed that Aussie Broadband's residential business has plateaued, but it has other fires burning for future growth.

"Reselling the NBN isn't a great business, but we see potential in Aussie as they grow their corporate and enterprise division and get a return on the capital they've sunk in their fibre network," read the QVG memo.

The Celeste team praised Aussie Broadband's acquisition of IT services provider Over The Wire, saying the company could now provide "a one-stop-shop for business customers".

"With the residential market now largely penetrated, the key to growth is capturing margin-rich business customers."

Aussie Broadband shares have almost halved since the start of the year.

Motley Fool contributor Tony Yoo has positions in Aussie Broadband Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited and PSC Insurance Group. The Motley Fool Australia has recommended Aussie Broadband Limited and PSC Insurance Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A woman is excited as she reads the latest rumour on her phone.
Growth Shares

Here's why experts rate these ASX 200 growth shares as buys

Healthcare, retail, and lithium... here's why analysts rate these growth shares highly right now.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Broker Notes

Morgans names the best ASX 200 growth shares to buy in March

These growth shares have been tipped for big things by a leading broker...

Read more »

a small child and a pug dog sit in a go cart wearing old fashioned drivers headress and goggles as the drive along a country road with the boy holding his arm in the air and shouting as if celebrating their performance behind the wheel.
Growth Shares

Top ASX growth shares to buy in March 2023

Could these growth stocks be set to hit the accelerator?

Read more »

A businessman hugs his computer and smiles.
Growth Shares

Buy and hold these ASX 200 shares: brokers

These could be great options for investors looking for buy and hold investments.

Read more »

A man sees some good news on his phone and gives a little cheer.
Growth Shares

Analysts say these exciting ASX growth shares are buys this month

These could be the growth shares to buy right now according to analysts.

Read more »

A boy is about to rocket from a copper-coloured field of hay into the sky.
Growth Shares

2 explosive ASX growth shares to buy this month: analysts

There are different levels of growth and these shares are in the clouds...

Read more »

A man sees some good news on his phone and gives a little cheer.
Growth Shares

2 ASX growth shares to buy: Goldman Sachs

Goldman Sachs believes these ASX shares are well-positioned for strong growth.

Read more »

A young man sits at his desk working on his laptop with a big smile on his face due to his ASX shares going up and in particular the Computershare share price
Growth Shares

These are the ASX 200 shares to buy in March: experts

Now could be the time to pounce on these ASX 200 shares.

Read more »