Analysts at Bell Potter have been busy finding ASX shares from several industries that they believe are best placed to have a strong 2021.
On this occasion, I’m going to look at emerging shares. Here are a couple that they rate highly:
PointsBet Holdings Ltd (ASX: PBH)
Bell Potter is a fan of this sports betting company and has placed a speculative buy and $15.10 price target on its shares.
The broker notes that the company has a significant opportunity in the United States market, where it currently has partnerships in 12 US states with a combined population of 94 million. It also sees huge potential from a “company transforming” media partnership with NBCUniversal.
Bell Potter commented: “This incorporates the largest sports audience of US media companies of 184m, spanning the NBC and Telemundo (Hispanic) national networks, 8 Regional Sports cable channels, as well as other cable channels and digital networks.”
Looking ahead, the broker appears to believe that PointsBet is well placed to “execute on its target of generating US$1bn of annual revenue by 2025, with a pathway to 10% market share in each US state.”
The PointsBet share price ended the week at $12.00.
Resimac Group Ltd (ASX: RMC)
Another emerging company the broker is positive on is Resimac. It has a buy rating and $2.50 price target on Australia’s leading nonbank mortgage provider.
It notes that the company is currently servicing over 50,000 customers with principally funded assets under management of $12.7 billion.
However, it appears to believe this could grow strongly in the future. Especially given how it “does not have the overhead of maintaining an extensive nationwide branch network, rather it has relationships with over 85% of Australia’s mortgage brokers, where customer service and a quick approvals process have been key factors for RMC increasing originations.”
Looking ahead, the broker is expecting a strong first half result. Noting that management’s profit guidance implies an increase of ~75% on the second half of FY 2020.
It is also expecting the company’s full year result to be strong, thanks partly to the benefits of a lower impairment charge. The broker notes that Resimac has seen the percentage of customers in COVID payment deferrals reduce from 10% to 4.4%.
The Resimac share price ended the week at $2.13.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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