Although the Australian share market is closing in on a record high, not all shares are faring so well.

Two ASX shares that have fallen heavily over the last 12 months are listed below. Here’s why experts say they could be buys:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Despite a recent rebound, this pizza chain operator’s shares have lost 31% of their value over the last 12 months. Investors have been selling this ASX share due to concerns over the impact of inflationary pressures on both consumers and its margins.

Analysts at Morgans appear to believe that this is a temporary headwind that will soon ease. In light of this, the broker believes now is the time to make an investment in a quality business. Morgans commented:

Cost inflation and adverse FX movements present significant challenges to earnings at present, as evidenced by EBIT margins, which fell from 13.4% in FY21 to 11.5% in FY22. […] We believe these pressures are transitory in nature. In our opinion, now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time.

Morgans has an add rating and $90.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price was sold off on Tuesday following the release of the online furniture and homewares retailer’s half year results. This means its shares are now down over 50% since this time last year. The de-rating of tech shares and softening revenue are behind this decline.

Goldman Sachs remains positive and sees this weakness as a buying opportunity for patient investors. It commented:

We think the negative share price reaction (-27%) is overdone, in response to a weaker than expected trading update for the first five weeks of the year which we view as largely reflecting the lapping of omicron rather than a deterioration in underlying trends. We view the balance towards profitability as a sensible shift given near term uncertainty; that said we expect the business to pivot back to active customer growth in FY24 which should drive market share gains.

The broker has a conviction buy rating and $6.50 price target on Temple & Webster’s shares.

The post Buy these beaten down ASX shares now: experts appeared first on The Motley Fool Australia.

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More reading

• Why Ansell, Breville, Star, and Temple & Webster shares are falling
• Dash for trash fades as earnings cliff looms for ASX shares, with the market shooting first and asking questions later
• Temple & Webster share price sinks 13% on half year results
• Looking for growth? 3 ASX shares experts rate as buys
• Expect big things from these ASX growth shares: analysts

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Temple & Webster Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Temple & Webster Group. 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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