What does an ASX-listed skin laser clinic have in common with a logistics business?
They’ve both been named as ASX shares to buy right now by experts.
And they’re both named Silk.
Silky 59% upside in share price
The share price for Silk Logistics Holdings Ltd (ASX: SLH) has plunged 5.9% for the year so far, but Morgans investment advisor Jabin Hallihan reckons it’s a buying opportunity.
“Silk Logistics utilises an asset-light, technology-enabled, flexible business model that guards against increasing costs as they are passed through to customers with a margin,” he told The Bull.
The Melbourne-headquartered business handles logistics from the port and wharf to warehousing and supply chain distribution.
Hallihan thought Silk Logistics had a positive February reporting season.
“The company generated revenue of $182.5 million in the 2022 first half — an 18.5% increase on the prior corresponding period,” he said.
“The full-year outlook is for solid growth. Our 12-month price target is $3.31 a share.”
That is a stunning 59% upside from the closing stock price on Monday.
Silky move into New Zealand and Victoria
The Silk Laser Australia Ltd (ASX: SLA) share price has dropped a painful 30.6% already this year.
But Wilsons investment advisor Peter Moran is still recommending the laser clinic network to clients as “overweight”.
He liked the look of the first-half result despite potential customers being unable to visit due to COVID-19 lockdowns and precautions.
“The company also benefited from the acquisition of Australian Skin Clinics (ASC), which moved under Silk Laser’s control in September,” Moran said.
“The 56 ASC clinics are being smoothly integrated and provide a growth opportunity in Victoria and New Zealand, which had been previously missing from Silk’s footprint.”
While coverage for the $158 million small-cap company is scarce, both analysts surveyed on CMC Markets rate Silk Laser as a “buy”.
The Silk Laser share price closed Monday at $2.97.
The post 2 ASX shares to buy for CHEAP that have the same name: experts appeared first on The Motley Fool Australia.
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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended SILK Laser Australia Limited. The Motley Fool Australia has recommended SILK Laser Australia Limited. 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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