Top Australian shares to buy now for long-term growth

MotleyFool
03-01

For investors looking to buy and hold quality Australian shares for the long term, analysts have recently highlighted a few top options.

Let's take a look at what they are saying about these shares and how much they think they are worth. They are as follows:

HMC Capital Ltd (ASX: HMC)

The first Australian share to look at is alternative asset manager HMC Capital. The company currently manages $18.5 billion in funds under management (FUM), but analysts at Bell Potter believe this could grow significantly in the coming years.

The broker sees the company as being in a strong position after a period of major transformation, with new platforms established across digital infrastructure, energy transition, and private credit.

While costs have increased in the short term, its analysts believe this places HMC Capital to reach a scale that could allow it to hit its long-term FUM target of $50 billion by FY 2030.

Bell Potter has a buy rating and a $12.90 price target on HMC Capital's shares.

Megaport Ltd (ASX: MP1)

Another Australian share that analysts see as a great long-term option is Megaport. It is a global leader in elastic interconnection services, which allow businesses to connect to major cloud providers easily and efficiently.

Megaport has been riding the wave of cloud computing and artificial intelligence (AI) adoption, and analysts at Morgans expect this growth to continue.

The broker highlights Megaport's position as the leading Network as a Service provider, with operations in countless data centres worldwide. It thinks that this leaves it well-placed to benefit from the increasing need for global data movement driven by AI and cloud computing growth.

The broker currently has an add rating and $14.00 price target on the tech stock.

Temple & Webster Group Ltd (ASX: TPW)

Finally, analysts at Citi have named Temple & Webster as a top Australian share to buy.

The country's leading online furniture and homewares retailer has been benefitting greatly from the structural shift towards e-commerce.

Despite stellar growth in recent years, Temple & Webster still appears to have plenty of room left to expand, particularly as Australia's online penetration in this category remains lower than in other Western markets.

Citi's analysts also see artificial intelligence playing a role in boosting the company's profitability, with expectations that AI-driven efficiencies could help Temple & Webster achieve its long term 15% EBITDA margin target. This compares to its FY 2025 margin guidance range of 1% to 3%.

Citi has a buy rating and $21.10 price target on Temple & Webster's shares.

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