The S&P/ASX 300 Index (ASX: XKO) is full of interesting businesses. A leading fund manager has picked out two lower-profile ASX 300 shares that could do well.

Wilson Asset Management (WAM) operates a number of listed investment companies (LICs) including WAM Research Limited (ASX: WAX) and WAM Active Limited (ASX: WAA).

Over the long term, many of the fund manager’s LICs have outperformed their respective benchmarks. So, it could be worthwhile to pay attention to the names that WAM suggests are opportunities.

So, let’s look at some of the opportunities that WAM has picked.

Neuren Pharmaceuticals Ltd (ASX: NEU)

WAM said that Neuren Pharmaceuticals is currently developing new therapies for “highly debilitating neurodevelopment disorders that emerge in early childhood, which currently do not have approved medicine to treat the condition[s].”

The fund manager pointed out that Neuren announced in late 2022 that the US Food and Drug Administration (FDA) approved a priority review for its Rett syndrome therapy with the results due in February 2023.

WAM also noted that in December, the ASX 300 share announced it had submitted an investigational new drug application for FDA’s approval to proceed with a phase 2 trial for a therapy for Prader-Willi syndrome.

It was a “significant milestone” for the development of the new therapy, according to the fund manager.

Neuren Pharmaceuticals noted positive results from its two other trials for therapies for Angelman syndrome and Phelan-McDermid syndrome, which showed “good safety and tolerability profiles”. WAM concluded with its thoughts on the business:

We look forward to the announcement of further top-line results from these trials in the second half of 2023.

Perenti Ltd (ASX: PRN)

Perenti was another ASX 300 share picked out by the investment team. This business was described as one that provides mining services including contract mining, mining support services, and future technology solutions.

Last month, Perenti announced another earnings guidance upgrade – FY23 revenue is now expected to be between $2.7 billion to $2.9 billion. FY23 earnings before interest, tax, and amortisation (EBITA) guidance is for between $230 million to $250 million.

WAM explained that this upgrade was because of improved commercial conditions across several Australian and African projects. As well, the company has been awarded a new contract for development work with Evolution Mining Ltd (ASX: EVN) and its work scope with Regis Resources Ltd (ASX: RRL) is expanding.

Last month, Perenti announced a contract extension for its surface mining business in Africa, valued at approximately US$185 million over four years. The fund manager concluded its thoughts on the ASX 300 share with these comments:

We are pleased to see continued positive developments in Perenti’s business, which contributes to the company’s FY25 target of achieving an EBITA margin of 10%.

The post 2 little-known ASX 300 shares with big potential: expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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