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Last month it was inflation fears and now it’s the war in Ukraine.

The S&P/ASX 200 Index (ASX: XJO) has taken a beating this year and, in the short term, there is no relief in sight as Russian troops march in.

The index is now down almost 8% for the year.

This, however, does mean there are some bargains out there. And this month’s reporting season has shed further light on which ASX shares could be the hidden gems.

The team at Morgans this week picked out a couple of stocks that have plunged so much that they now present once-in-a-generation entry points:

This ASX share is just too cheap to ignore

Pizza maker Domino’s Pizza Enterprises Ltd. (ASX: DMP) fell below expectations in its financial results last week.

Underlying net profit dived 5.3% to $91.3 million for the half-year ending 31 December, and the firm forecast it would fall below its target range for same-store sales growth.

Morgans analyst Andrew Tang pointed out that the profitability in its Asian operations was disappointing in its latest result.

“This represents a reset of Asian margins after the COVID tailwinds of last year, but we believe margins will improve in the months ahead as the rush of new corporate stores matures,” he reported in Morgans’ “best calls to action” memo.

“We have lowered EBIT forecasts by 5% for FY22 and 4% for FY23.”

Despite this, the Domino’s share price is now too tempting.

The stock has now sunk 34% for the year, and a hair-raising 51% since September.

“After a period of sustained weakness in the share price, we think now is the time to give Domino’s another look. We upgrade to ‘add’,” he said.

“Domino’s remains a growth story. It has a platform to deliver a positive trajectory of sales and earnings as its store rollout strategy continues and network efficiencies increase.”

Domino’s shares closed Friday at $82.20.

This healthcare company reported strong numbers

The reception to Healius Ltd (ASX: HLS)’s half-year result was opposite to Domino’s.

“1H underlying results were above expectations, with solid revenue growth underpinned by COVID-related gains and cost outs, driving margins and operating cash flow to record levels,” said Tang.

“Pathology posted triple-digit profit growth, on uplift in both COVID and non-COVID testing.”

With Healius shares falling more than 20% since the end of December, the stock is now at the “right price and well placed for a rebound”.

“While no FY21 guidance was provided, as COVID uncertainty remains, we believe the company looks well placed to not only benefit from a likely ‘baseload’ of COVID PCR testing going forward, but also from any rebound in demand from the backlog in diagnosis and surgery as the country opens up.”

Healius shares closed Friday at $4.29.

The post 2 ASX shares now at an awesome price for buying: expert appeared first on The Motley Fool Australia.

More reading

• Buy these ASX shares following the market correction: experts
• These were the worst performing ASX 200 shares last week
• ‘Attractive entry point’: Broker upgrades Domino’s (ASX:DMP) shares
• 5 ASX 200 shares tumbling to 52-week lows today
• Why Australian Ethical, Domino’s, Scentre, and St Barbara shares are falling

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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If you’re in the process of building an income portfolio, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be in the buy zone right now:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that could be in the buy zone is Accent. It is the owner of a growing portfolio of store brands including Glue, HYPEDC, Pivot, Platypus, Sneaker Lab, and Stylerunner.

While lockdowns have weighed heavily on its performance in FY 2022, the team at Bell Potter believe it is worth sticking with the company. Especially with its analysts forecasting a big rebound in Accent’s profits and dividends in FY 2023.

Bell Potter has pencilled in a fully franked dividend of 6 cents per share in FY 2022 and then 11 cents per share in FY 2023. Based on the current Accent share price of $2.00, this will mean yields of 3% and 5.5%, respectively.

Bell Potter also sees plenty of upside for the company’s shares. It has a buy rating and $2.75 price target on them.

Woodside Petroleum Limited (ASX: WPL)

Another ASX dividend share that could be in the buy zone is Woodside. This energy producer’s shares may have stormed 23% higher so far in 2022, but they are still expected to provide investors with generous yields in the near term.

In addition, the future looks very bright for Woodside thanks to its upcoming merger with the petroleum assets of BHP Group Ltd (ASX: BHP). This transformative merger with make the company a top ten global producer with a collection of world class operations and numerous growth options.

Morgans is a fan of Woodside and is forecasting dividends per share of $1.29 in FY 2022 and then 94 cents in FY 2023. Based on the current Woodside share price of $27.95, this will mean yields of 4.6% and 3.4%, respectively.

The broker has an add rating and $30.35 price target on its shares.

The post Analysts name 2 top ASX dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• How might the Ukraine crisis impact the Woodside (ASX:WPL) share price?
• 5 things to watch on the ASX 200 on Friday
• The oil price has just hit an 8-year high. What might this mean for ASX shares?
• Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why

Motley Fool contributor James Mickleboro 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 recommended Accent Group. 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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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a very difficult week with a small daily gain. The benchmark index rose 0.1% to 6,997.8 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to surge higher

The Australian share market looks set to start the week on a very positive note following a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day a massive 166 points or 2.4% higher this morning. On Wall Street, the Dow Jones jumped 2.5%, the S&P 500 climbed 2.25%, and the Nasdaq rose 1.6%.

Oil prices pull back

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a tough start to the week after oil prices pulled back. According to Bloomberg, the WTI crude oil price fell 1.3% to US$91.59 a barrel and the Brent crude oil price dropped 1.2% to US$97.93 a barrel. Traders appear to have been taking a bit of profit off the table following strong gains during the week.

Zip half year results

The Zip Co Ltd (ASX: Z1P) share price will be on watch today when it releases its half year results. While its financials have largely been pre-released, there has been speculation that the buy now pay later (BNPL) provider could announce a capital raising with its results this morning.

Gold price drops

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a poor start to the week after the gold price tumbled lower on Friday night. According to CNBC, the spot gold price fell 2% to US$1,887.60 an ounce. The safe haven asset dropped after investors flooded back into risk assets.

Bank of Queensland half year results

The Bank of Queensland Limited (ASX: BOQ) share price could be one to watch when it releases its half year results. According to CommSec, the market consensus estimate is for a net profit after tax of $202.6 million for the first half. The market is also expecting the regional bank to declare an interim dividend of 24.3 cents per share.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Friday
• How might the Ukraine crisis impact the Woodside (ASX:WPL) share price?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. 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 Bruce Jackson.

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Investors that are looking for some new shares to buy may want to look at the ones listed below.

While these three ASX 200 shares are from different areas of the market, one thing they have in common is that they have been tipped to climb higher from here.

Here’s what you have to know about them:

Goodman Group (ASX: GMG)

The first ASX 200 share that could be in the buy zone is Goodman. It is a global integrated commercial and industrial property company with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil. Goodman has a world class portfolio of properties which have exposure to key growth markets such as ecommerce and logistics. Given the strong demand it is experiencing and its huge development pipeline, Citi believes it is well-placed for growth over the coming years.

Its analysts currently have a buy rating and $29.50 price target on its shares. This implies potential upside of almost 33% for investors.

ResMed Inc. (ASX: RMD)

Another ASX 200 share to look at is ResMed. It is a medical device company with a focus on the sleep treatment market. ResMed has been a very strong performer over the last decade and looks well-placed to continue this strong form over the next decade. This is thanks to its world class products, significant market opportunity, and the growing prevalence of sleep disorders. Its near term performance is also being boosted by a 5.2 million CPAP device recall from Philips.

Morgans is a fan of the company and has an add rating and $40.46 price target on ResMed’s shares. This suggests potential upside of 23% over the next 12 months.

Westpac Banking Corp (ASX: WBC)

A final ASX 200 share to look at is Westpac. This banking giant’s shares are down notably from their highs. This has been driven by concerns about its margins and cost cutting plans. However, the team at Morgans believe the challenges facing Westpac are not unsurmountable. As a result, it doesn’t believe its shares should be priced like a value trap and feels its recent update should alleviate concerns over its cost outlook.

The broker has an add rating and $29.50 price target on its shares. This implies potential upside of almost 30% for investors over the next 12 months.

The post Analysts name 3 ASX 200 shares with potential upside of 20%+ appeared first on The Motley Fool Australia.

More reading

• 2 blue chip ASX 200 shares analysts rate as buys
• Own Westpac (ASX:WBC) shares? Here’s the latest on the bank’s cost-cutting crusade
• Analysts name 2 ASX 200 blue chip shares to buy
• Should you be buying ASX 200 bank shares in February?
• The Westpac (ASX:WBC) share price has gained less than $4 in 10 years. Have the dividends been worth it?

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. and Westpac Banking Corporation. 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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There are some leading exchange-traded funds (ETFs). Are they top candidates for the long-term?

Individual businesses can have plenty of growth potential, but there are ETFs that give investors exposure to a whole group of companies with typically good prospects.

With that in mind, here are two options:

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF gives investors exposure to 100 of the biggest businesses on the NASDAQ, which is a North American stock exchange.

Many of the biggest technology businesses in the world are listed on the NASDAQ, such as Microsoft, Apple, Amazon and Alphabet. These businesses are ones that have dominant global positions in their respective markets and continue to introduce products that are changing how we work, learn or entertain ourselves.

But there are more tech businesses in this portfolio than just the ones with market capitalisations over a trillion dollars.

These are some of the other tech names in the portfolio, which all continue to aim to improve the world with their services: Nvidia, Tesla, Meta Platforms, Adobe, Broadcom, Cisco Systems, Advanced Micro Devices, Intl, Qualcomm, Netflix, Texas Instruments, Intuit and PayPal.

But the ETF is not all tech either, there is diversification in other areas. Costco, PepsiCo, Intuitive Surgical and Starbucks are some of the larger positions.

Since inception in May 2015, the NDQ ETF has returned an average of 21.9% per year, that’s after the management fees of 0.48% per annum.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

This ETF is about giving investors the ability to invest in the global video gaming and e-sports industry. There are only 26 holdings in the portfolio, but several places are represented: the US, Japan, China, South Korea, Singapore, France, Sweden, Taiwan and Poland.

The video gaming business is now larger than both the movie and music industries. Video gaming has achieved 12% average annual growth since 2015. The e-sports sector has opened up a number of new revenue streams including: game publisher fees, media rights, merchandise, ticket sales and advertising.

Global games revenue is expected to grow from around US$100 billion in 2016 to US$200 billion in 2023.

VanEck believes that the ESPO ETF has a “dynamic growth opportunity”, giving investors exposure to tech away from the typical ‘FAANG’ names. The fund provider believes this ETF can be a long-term growth story.

These are some of the ETF’s biggest holdings: Tencent, Activision Blizzard, Nintendo, Nvidia, Advanced Micro Devices, Netease, Electronic Arts and Take-Two Interactive Software.

The post Are these 2 leading ETFs great buys in March 2022? appeared first on The Motley Fool Australia.

More reading

• 2 excellent ETFs with compelling potential
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• 2 excellent ETFs for potential long-term returns

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. owns and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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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If you’re looking to take advantage of recent market weakness, then it could be worth considering the ASX shares listed below.

Both have recently been named as buys by the team at Bell Potter. Here’s what its analysts are saying:

Premier Investments Limited (ASX: PMV)

This retail conglomerate’s shares could be in the buy zone according to Bell Potter. Its analysts have put a buy rating and $32.00 price target on its shares. Which, based on the current Premier Investments share price of $27.79, suggests potential upside of 15% for investors.

The broker sees opportunities for the Peter Alexander brand to expand globally and appears optimistic that the Smiggle brand will rebound now children are returning to school.

Bell Potter said: “PMV has been an outperformer throughout COVID-19, demonstrating resilient sales performance underpinned by market leading omni-channel capabilities that leverage off a wholly owned DC. We see several key positive catalysts over the next 12-24 mths including the continued rebound in Smiggle, the potential launch of Peter Alexander in new offshore markets, plus M&A opportunities. We retain our Buy rating on the stock.”

Temple & Webster Group Ltd (ASX: TPW)

Bell Potter remains positive on this online furniture retailer following its first half update.

Its analysts have upgraded its shares to a buy rating and put a $12.10 price target on them. This implies potential upside of 72% based on the current Temple & Webster share price of $7.03.

Bell Potter remains positive on its outlook and believes recent share price weakness is a buying opportunity.

The broker explained: “We have moderated our revenue growth forecasts as conservative measure in a rising interest rate environment, although we are yet to allow for upside from TPW’s Home Improvement offering. The net effect is our PT reduces to $12.10 (previously $12.75).”

“Following TPW’s share price retreat, we believe valuation is now more appealing with FY23e EV/sales ~1.8x. Also, TPW’s new growth horizons (B2B / Home Improvement), the structural shift to online plus M&A prospects, provide attractive offsetting benefits vs potential risks from the housing cycle. Accordingly, we upgrade from Hold to Buy,” it concludes.

The post 2 top ASX shares this broker loves appeared first on The Motley Fool Australia.

More reading

• 2 beaten-up ASX shares to buy for the long-term: experts
• These are the 10 most shorted ASX shares
• Here’s how rich you’d be if you invested $20k in these shares 10 years ago
• These are the 10 most shorted ASX shares
• 3 reasons why the Temple & Webster (ASX:TPW) share price is a buy after its plunge: experts

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Premier Investments Limited and Temple & Webster Group Ltd. 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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Exchange traded funds (ETFs) can be a great way for investors to diversify a portfolio. This is because they give investors access to a large group of shares through just a single investment.

But which ETFs should you look at? Listed below are two ETFs that are popular with ASX investors. Here’s what you need to know and why they could be worth getting better acquainted with them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF for ASX investors to look at is the BetaShares Asia Technology Tigers ETF. This popular ETF gives investors easy exposure to many of the Asian region’s most exciting growth shares. At present, the ETF is home to ~50 tech companies that are leading Asia’s technological revolution.

Among its holdings are giants such as Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and WeChat owner Tencent. In respect to Pinduoduo, it is a US$65 billion e-commerce platform with an active customer base closing in on a whopping 1 billion. This makes local online retailer Kogan.com Ltd (ASX: KGN) and its ~4 million active customers look miniscule.

Betashares Global Sustainability Leaders ETF (ASX: ETHI)

Another ETF for ASX investors to take a closer look at is the Betashares Global Sustainability Leaders ETF. This ETF gives investors exposure to large global stocks that have been identified as “Climate Leaders.”

BetaShares notes that this ETF allows investors to invest in a way that is consistent with their ethical standards. The fund manager highlights that the ETF combines positive climate leadership screens with a broad set of ESG criteria, offering investors a true-to-label ethical investment solution. Among the shares included in the fund are the likes of Adobe, Apple, Home Depot, Nvidia, Toyota, and Visa.

The post 2 popular ETFs you need to know appeared first on The Motley Fool Australia.

More reading

• 3 fantastic ETFs for ASX investors today
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• Down 36% in a year, could the Betashares Asia Technology Tigers ETF (ASX:ASIA) be poised to take off?
• Here are 3 highly-rated ASX growth shares

Motley Fool contributor James Mickleboro 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 recommended BetaShares Asia Technology Tigers ETF. 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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If you’re looking for some new additions to your portfolio in March, then you may want to check out the shares listed below.

These ASX shares have recently been upgraded to buy ratings by the team at Morgans. Here’s what the broker is saying about them:

Cochlear Limited (ASX: COH)

Morgans is positive on this hearings solutions specialist and upgraded its shares to an add rating with a $233.20 price target last week.

Its analysts were impressed with Cochlear’s half year results, which came in ahead of expectations thanks to strong sales growth and expanding margins. Looking ahead, the broker believes the company’s earnings profile is improving, potentially making it a good time to invest.

Morgans explained: “While we continue to believe a full recovery from COVID-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, is all suggestive of an improving earnings profile.”

Super Retail Group Ltd (ASX: SUL)

This retail conglomerate could be in the buy zone according to Morgans. Last week the broker upgraded its shares to an add rating with a $13.80 price target.

The broker notes that its shares have been sold off following its results and feels this has created a buying opportunity for investors.

Morgans commented: “Adjusting for the timing of Boxing Day, SUL’s 1H22 EBIT was 3% above our forecast. Sales were considerably better than expected, with BCF, Supercheap Auto and rebel all delivering double-digit LFLs on a two-year stack. There are no major changes to our full year EBIT estimates. We upgrade our rating from HOLD to ADD as today’s share price decline has put the stock on an FY23F P/E of 12.3x and EV/EBIT of 10.3x, which we see as too low for the quality of the business.”

The post Morgans just upgraded these ASX shares to buys appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Top brokers name 3 ASX shares to buy today
• ‘Clear leader in a defensive industry’: Cochlear (ASX:COH) share price jumps on broker upgrade
• Morgans names 2 ASX 200 dividend shares to buy right now
• Here are the top 10 ASX shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Cochlear Ltd. and Super Retail Group Limited. The Motley Fool Australia owns and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended Cochlear Ltd. 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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Reporting season has (nearly) finished and there are plenty of ASX shares that could now be interesting investment opportunities after the recent share market volatility.

When a company releases a result, the market gets insight into how things are going, the short-term outlook and management’s plans for future growth.

After some share price movements, these two ASX shares could be compelling:

Adairs Ltd (ASX: ADH)

Adairs is a leading retailer of homewares, furnishings and furniture. The company now runs three businesses after acquisitions – Adairs, Mocka and Focus on Furniture.

The Adairs share price has fallen 29% since the start of the 2022 calendar year.

It was difficult in the first six months for the company with store closures and COVID-19 impacting consumer confidence. Adairs said that these disruptions should not be recurring in the medium-term and the underlying business continues to perform well.

Total half-year sales, including $12.5 million from Focus, were down 0.5% year on year. Group online sales (excluding Focus) were up 8.2% to $97.6 million. The underlying earnings before interest and tax (EBIT) from the Adairs and Mocka businesses essentially halved year on year.

However, there were some non-financial positives achieved – Adairs’ store floorspace rose 3.8% (and 8.6% in the last 12 months), Linen Lover membership is closing in on 1 million customers (up 10% in 12 months), it acquired Focus on Furniture and the national distribution centre (NDC) is operational.

Some plans of the ASX share to grow the profit include: upsizing stores, growing the store network, increasing online sales, becoming more efficient (helped by the new NDC) and increasing Mocka’s presence in Australia.

Looking ahead, Commsec numbers suggest the Adairs share price is valued at under 7x FY24’s estimated earnings with a FY24 grossed-up dividend yield of 15.4%.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a rapidly growing jewellery business that is generally targeted at the younger end of the consumer world.

It already has a global presence with at least 10 stores in: Australia, New Zealand, Singapore, Malaysia, South Africa, the UK, France, Germany, Belgium the USA and the Middle East. It also has a small presence in a few other European countries. It opened 42 net new stores in the first six months of FY22.

The ASX share reported in its FY22 half-year result that demand and profitability came roaring back. Revenue rose 48.3%, earnings before interest and tax (EBIT) jumped 59% and net profit after tax (NPAT) rose 70.3% to $36.7 million.

Whilst the company was impacted by COVID, higher freight costs and logistics, it saw strong growth across most major markets as economic conditions improved. The company’s online sales grew 36%, but it thinks it’s only at the ‘infancy’ stage of its global online offering – it’s investing to deliver growth here whilst ensuring it maintains profitability.

Total sales in the first eight weeks of the second half were up 61.7%.

The company is quickly adding to its store network. In the US it added 18 new stores and it’s now trading from 19 US states. It has put in place a global leasing team to drive growth from existing and “new markets.”

Looking at Commsec estimates, the Lovisa share price is valued at 26x FY24’s estimated earnings with a projected partially franked dividend yield of 3%.

The post 2 compelling ASX shares that could be buys in March 2022 appeared first on The Motley Fool Australia.

More reading

• Broker says Lovisa (ASX:LOV) could become a ‘global force’
• Brokers name 3 ASX shares to buy today
• Russia invades Ukraine and the ASX tanks. Scott Phillips on Nine’s Late News
• The Lovisa (ASX:LOV) dividend jumped 85%. Here’s what you need to know
• Why Cimic, Lovisa, NextDC, and Nine shares are charging higher

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. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Lovisa Holdings Ltd. 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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Listed below are two ASX growth shares with major upside potential, according to analysts.

Here’s what you need to know about these growth shares:

Adore Beauty Group Limited (ASX: ABY)

Adore Beauty is a leading online retailer in the Australian beauty and personal care (BPC) market. Earlier this month, the company released its half year results and revealed an 18% increase in revenue over the prior corresponding period to $113.1 million.

This was underpinned by a 13% increase in active customers to 876,000 and a 5% increase in annual revenue per active customer to $224. Even if you annualise its half year sales, it is still only a small slice of the $11.2 billion BPC market. This gives Adore Beauty a long runway for growth over the next decade as more and more beauty sales shift online.

In response to its result, the team at Shaw and Partners put a buy rating and $3.50 price target on its shares. This compares to the latest Adore Beauty share price of $2.12.

Allkem Limited (ASX: AKE)

Allkem is a top five global lithium mining company with a collection of high quality assets across several locations. These include Olaroz project in Argentina, Mt Cattlin in Western Australia, the Sal de Vida brine project in the lithium triangle, and the James Bay project in Canada.

It appears well-placed for growth in the coming years thanks to sky high lithium prices and its production growth opportunities.

The team at Bell Potter is very bullish on Allkem. The broker even named it the “go-to stock for multi-project exposure to lithium markets.” Its analysts currently have a buy rating and $17.51 price target on the company’s shares. This compares to the latest Allkem share price of $9.10.

The post Analysts are tipping massive upside potential for these ASX growth shares appeared first on The Motley Fool Australia.

More reading

• Is now the time to buy these 2 beaten-up ASX shares in March 2022?
• Why is the Adore Beauty (ASX:ABY) share price having an 8% glow up today?
• 2 ASX growth shares with huge upside potential
• Is now the time to buy these 2 great ASX tech shares?
• Broker names 3 ASX lithium stocks to buy with huge upside potential

Motley Fool contributor James Mickleboro owns Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group 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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