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2 ASX shares I’d buy in January 2021

There are some really worthwhile ASX shares that could be worth buying in January 2021.

Hopefully 2021 is a more positive year than 2020, but investors still need to focus on the right opportunities.

With that in mind, I think the following ASX shares would make good buys in January:

Magellan Financial Group Ltd (ASX: MFG)

Magellan is one of the largest fund managers in Australia. In the last update the company said that it had around $103 billion of funds under management (FUM).

The business has been growing for a long time. I think it’s quality with great leadership who are always thinking how to grow the business.

There are a couple of reasons why I believe now is a particularly good time to buy.

Firstly, the Australian dollar has been strengthening against the US dollar. That means that Magellan’s FUM isn’t as high in Australian dollar terms as it would have been if the exchange rate had stayed where it was a few months ago. It could reverse, the Aussie dollar isn’t normally this strong. I believe that the strong Aussie dollar is a contributing factor why the Magellan share price has fallen 6.7% over the last month.

The other reason I like Magellan is that it’s making its own investments into operating businesses like Barrenjoey and Guzman y Gomez. This gives the business much more growth potential.

At the current Magellan share price, it’s valued at 17x FY23’s estimated earnings according to CommSec.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is another high conviction ASX share idea of mine at the moment.

It’s a payments business that specialises in digital giving. The core focus is on large and medium churches in the US.

As Pushpay earns most of its profit in US dollars and reports in US dollars, the stronger Aussie dollar makes it an opportunistic time to buy.

I’m very attracted to the scalability opportunity with Pushpay. Its margins keep rising every year even as it invests for more growth. In the FY21 half-year result its gross margin rose from 65% to 68%.

If Pushpay can eventually hit its US$1 billion revenue goal then its margins could be much higher.

Client retention rates are very high. If Pushpay can keep its current client base whilst winning over smaller churches then it could be a very solid ASX share in my opinion. Expanding into other countries would also be a really smart idea if it can take its winning formula to places like Central America or South America.

At the current Pushpay share price it’s valued at around 26 times the estimated earnings for the 2023 financial year, according to CommSec.

There are other ASX growth shares I also believe could be good opportunities like Redbubble Ltd (ASX: RBL) or EML Payments Ltd (ASX: EML).

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