‘Bright outlook’: Buy these 2 ASX shares before they explode

A happy looking woman holding a colourful umbrella against a grey cloudy sky.A happy looking woman holding a colourful umbrella against a grey cloudy sky.

If I told you that an airline was selling tickets at half-price, I’d bet you would seriously consider taking a holiday somewhere exotic.

Similarly, investors should be glad to pick up ASX shares at a heavy discount. 

But psychologically, it can take some courage to pull the trigger.

This week Morgans investment advisor Jabin Hallihan named a couple of buy suggestions that might give you that push you need:

A classic acquisition sets up this Aussie company

Imdex Limited (ASX: IMD) provides technology and equipment for the mining industry.

Its share price has unfortunately dipped more than 16% since 23 January.

Hallihan is bullish in the long run, citing the benefits of a recent business deal.

“This global mining technology company recently acquired a 40% interest in Krux Analytics Inc for $6 million,” Hallihan told The Bull.

“The deal enables Imdex to be part of cost-effective operations from exploration drilling to production.”

The technology that the acquisition brings in is attractive to Imdex’s resources sector clientele.

“Krux has developed cloud-connected sensors and drilling optimisation products to improve the process of identifying and extracting mineral resources,” said Hallihan.

“Accurate subsurface data can be obtained in real time. Imdex offers a bright outlook.”

Imdex shares have an almost universal endorsement from the wider professional investment community. 

According to CMC Markets, eight out of nine analysts currently rate the tech stock as a buy.

Debt buying can only ramp up from here

The Credit Corp Group Limited (ASX: CCP) share price has lost a painful 25% since early February.

The debt-buying industry remains quieter than expected, causing softness in investor sentiment.

But with 11 interest rate rises in the space of a year filtering their way through the economy, one can only imagine the number of Australians falling behind in their bills would increase from here.

Hallihan is buying Credit Corp shares on that premise.

“Any increase in bad and doubtful debts can be beneficial for this debt collection and services company,” he said.

“We’re forecasting earnings per share [EPS] to grow by 18.8% in the next 12 months.”

Morgans has a stock price target of $24.50, which implies a 39.7% upside from Monday’s closing price of $17.53.

The post ‘Bright outlook’: Buy these 2 ASX shares before they explode 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 positions in and has recommended Imdex. The Motley Fool Australia has positions in and has recommended Imdex. 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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