ASX consumer staples stock Select Harvests Ltd (ASX: SHV) is set to benefit from tailwinds over the next 12 months according to a new report from Bell Potter. 

Select Harvests is an integrated grower, processor and marketer of almonds owning and operating farming and processing assets in Australia. 

It offers a vertically integrated model with core capabilities in farming, processing and marketing.

The company has experienced some significant volatility over the past 12 months. Its share price has fluctuated between highs of $5.20 and lows of $3.50. 

It currently sits on the high end of this range, closing trading yesterday at $4.90. 

However, the team at Bell Potter believe it could be set for significant growth in the next year. 

Almond prices continue to strengthen 

According to a new report from Bell Potter, almond prices have continued to strengthen, implying upside to consensus FY27e expectations. 

US almond prices are up around 20% since SHV’s 1H26 results, driven by smaller kernels and expectations that US production will again fall short of USDA forecasts.

While the price increase is unlikely to have much impact on FY26 earnings, it significantly improves the FY27 outlook. 

Bell Potter believes consensus pricing of around A$10/kg is too conservative compared with current spot prices of about A$12/kg.

Input costs are starting to ease, although Bell Potter remains cautious because the company has already locked in fertiliser costs for FY27 and water costs/requirements may remain elevated due to the drier seasonal outlook. They expect costs to move closer to long-term averages from FY28.

Based on this guidance, Bell Potter has increased its almond price assumptions, resulting in FY27 EPS being upgraded by 20% and FY28 EPS by 5%. 

Target price rises 

The broker has subsequently raised its target price to $6.05 (previously $5.30). 

From current levels, this indicates an upside potential of 23% for this ASX consumer staples stock.

Almond prices are strengthening and the SHV share price has lagged this move, continuing to trade below its market backed asset value of ~$5.30ps. At spot almond price levels, we would estimate FY27e EPS in a range of 53-72¢ps based on production guidance comparable to FY26e (i.e. 28,000-31,000kt), a level materially higher than the current consensus EPS level of ~37¢ps. The longer-term almond thematic has always been the key attraction to SHV, however, there is the scope for a near term sugar hit should the current positive market backdrop remain in place.

The post This ASX consumer staples stock is tipped to rise 23%: Expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

Few ASX blue-chip stocks have delivered a more dramatic rollercoaster ride than WiseTech Global Ltd (ASX: WTC) shares.

The logistics software company’s shares have traded as high as $135 and as low as $28.76 — an almost 80% peak-to-trough collapse.

At around $36.26, the stock remains near its lows after falling roughly 62% over the past year. Yet several brokers continue to see substantial upside.

So, what are they seeing that the market isn’t?

The rally that ran out of steam

For much of August, WiseTech shares looked ready for a comeback.

The stock jumped 25% during the first three weeks, reaching $45.47 on 25 August. Then the FY26 result arrived, and the recovery quickly lost momentum.

Since reporting, shares have fallen around 20%, taking them a long way from the $100-plus levels seen a year ago.

But the numbers themselves weren’t disastrous. WiseTech reported a 46% increase in EBITDA to US$558.4 million for FY26. That landed within management’s US$550 million to US$585 million guidance range, although it fell slightly below the US$569.5 million market forecast.

For FY27, management expects revenue to grow 6% to 10%, reaching US$1.48 billion to US$1.54 billion. Underlying EBITDA is forecast to increase 12% to 21%, with margins improving to 49% to 51%.

A global leader with a credibility problem

The price collapse of WiseTech shares isn’t simply a story about deteriorating demand.

WiseTech’s CargoWise platform remains a major logistics software system used by the world’s top 25 freight forwarders, including Toll and DHL.

That gives the company exposure to powerful long-term trends, including the digitalisation of global trade and increasing complexity across international supply chains.

The bigger challenges have been investor confidence, governance concerns and regulatory issues. That’s why FY27 execution matters so much.

What do brokers think?

Several brokers remain firmly bullish.

Morgans retained its buy rating with a $62.50 price target, while Morgan Stanley maintained its buy rating and $70 target. That represents potential upside of almost 93% from $36.26.

Bell Potter also retained its buy rating on WiseTech shares, despite cutting its target from $71.75 to $65.

In our view the issue with the result was the guidance and, in particular, the expected 45%/55% H1/H2 split in CargoWise revenue this year which implies mid single digit growth in H1 and strong double digit growth in H2. While we reflect this skew in our forecasts, we adjust for the risk in our valuation by reducing the multiples we apply in the PE ratio and EV/EBITDA and also increasing the WACC we apply in the DCF. The net result is a 9% decrease in our TP to $65.00 and we retain the BUY.

Citi lifted its target from $55.05 to $58.75, while UBS reduced its target from $65 to $56 but retained its buy recommendation. Macquarie has an outperform rating and $48.20 target.

But not everyone is convinced. Jefferies downgraded WiseTech to hold with a $45 target, while JPMorgan also has a hold rating and $40 target.

At $36.26, that enormous spread tells investors something important: the market remains deeply divided.

Foolish takeaway

The bull case rests on WiseTech converting its strong underlying position into faster growth and expanding margins. The bear case of WiseTech shares is that investor concerns and slower near-term growth deserve a much lower valuation.

For now, brokers appear more optimistic than the share price suggests. But WiseTech will need to deliver on its FY27 ambitions before the bulls can claim victory.

The post WiseTech shares are down 62%. Why are brokers still bullish? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The recent ASX reporting season “showed some softness” but was marginally better than feared, the analysts at Canaccord Genuity (CG) wrote in a recent research note.

The team at CG has identified four major ASX stocks they believe will do well over the next period, despite favouring global equities over domestic over the next six to 12 months.

They said earnings growth over the most recent reporting season looks set to come in at around 12%, while estimates have been trimmed marginally for the current year to about 11% growth, “which looks optimistic to [CG] given softening economic conditions”.

With this context in mind, let’s see which stocks they like.

Hub24 Ltd (ASX: HUB)

Hub24 shares are almost 30% down over a 12-month period, which CG has identified as a potential entry point. CG said that while there has been a temporary softness of funds inflows there, “remains a high-quality structural growth story”.

The company is trading well below its five year average, the CG team said.

They added:

This was driven by softer FY27 platform net flows, reflecting discretionary investment (non-super) pullback amid Federal Budget changes rather than advisers leaving the platform, with superannuation flows continuing to grow. FY28 platform FUA guidance of $186- 200bn implies ~17% growth, reinforcing the structural trajectory.  

Telix Pharmaceuticals Ltd (ASX: TLX)

The CG team said that while the Telix share price has recovered well over the past month, they continue to see further substantial valuation upside.

They believe the shares remain as much as 70% undervalued, with the next six months “catalyst rich”.

They added:

Two consecutive beats on Precision Medicine revenue, with Q2 sales coming in 10% above consensus, point to upside risk to FY26 revenue. Complementing its commercial momentum, the pipeline has had strong recent momentum and remains catalyst-rich, with the resubmission of Zircaix, the expected approval and launch of Pixclara, and enrolment progress and early efficacy data from the TLX591 ProsACT Part 2 trial all expected this year.

ResMed Inc (ASX: RMD)

The CG team said investor interest was returning to healthcare following the reporting season and that would benefit ResMed which is currently deeply discounted.

They added that CPAP device demand remained strong, and they believed that fears to ResMed’s business from GLP-1 weight loss drugs were overdone.

They added:

Successive alternatives have failed to displace CPAP as the primary treatment for sleep apnea, while real-world data show GLP-1 users are more likely to initiate and remain on therapy. RMD’s investment in diagnostic and referral channels adds further growth potential.

Goodman Group Ltd (ASX: GMG)

The CG team said that the market continues to undervalue Goodman Group’s data centre opportunity, “despite a difficult-to-replicate global power bank providing significant runway to data infrastructure demand”.

They said the company was trading at a similar valuation to the ASX All Industrials, despite having more attractive metrics.

They added:

The group’s development work in progress surged 53% in FY26 to $19.7bn, with data centres now 78% of the pipeline, underpinning a significant uplift to the group’s yield on cost, implying strong development margins. The key near-term catalysts will include major lease announcements, which should crystallise valuation uplifts and could trigger performance fees.

The post 4 high conviction ASX stock picks from Canaccord Genuity appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Hub24 and Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Hub24, ResMed, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group, Hub24, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.