The market tumbled into the red this morning, but that didn't stop these brokers from putting these ASX shares on their "buy" list.
The S&P/ASX 200 Index (Index:^AXJO) fell 0.5% in early trade no thanks to a weak lead from Wall Street overnight.
But many experts are still expecting ASX shares to deliver decent gains this year. If they are right, any pullback will be a buying opportunity.
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Broker picks this ASX share to buy after its battering
If you are hunting for bargains, Morgans reckons you should put the Origin Energy Ltd (ASX: ORG) share price on your list.
This is even after Origin share price crashed on the back of a profit downgrade late last week.
The energy company cut its FY21 Energy Markets earnings before interest, tax, depreciation and amortisation (EBITDA) to between $940 million and $1.02 billion. That's down from its earlier forecast of $1 billion to $1.04 billion.
Overlooking the short-term pain
"There is no doubt that the next 12 – 18 months will be challenging for ORG," said Morgans.
"However, the company is expecting to offset weaker revenue with cost reductions and its LNG business will reap more of the benefits of higher oil prices in FY22.
"While we expect near term challenges, we see upside potential in the medium term and maintain our ADD rating with a $5.79 price target."
Opportunity to add during the cap raise
Another tumbling ASX share to watch is the Seven Group Holdings Ltd (ASX: SVW) share price. Shares in the mining equipment conglomerate fell 4% to $22.50 after it emerged from its trading halt.
The group is undertaking a $550 million capital raising and the Seven Group share price is right bang on the new share offer price.
UBS reckons investors should buy the dip even as the dilution from the cap raise prompted it to lower its 12-month price target to $27.35 from $27.50 a share.
The broker has a bullish outlook on two of Seven Group's main businesses, Coats Hire and WesTrac. These businesses are leveraged to the booming mining sector and the large pipeline of infrastructure construction projects.
ASX share to buy ahead of its results
Meanwhile, Citigroup reiterated its "buy" recommendation on the Resmed CDI (ASX: RMD) share price ahead of its results.
The sleep disorder treatment company will release its quarterly earnings on 30 April. Citi expects it to post an earnings per share of US$1.34, which is ahead of consensus expectations of US$1.31.
Don't need an another COVID booster shot
While ResMed's results won't be bolstered by extra demand for its equipment from COVID-19, Citi believes its organic business is tipped to grow by 9%.
"At constant currency, we forecast revenue growth of 5% and an FX benefit of ~4% due to the lower USD," explained Citi.
"We believe that the company has performed very well operationally throughout the pandemic, growing market share."
The broker's 12-month price target on the ResMed share price is $29 a share.
